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MEMO Q C�NT6�JUED TO��Ctc Ll�,�'s./�%�.
TO: Honorable Mayor and City Counc � �'ASSED TO 2N0 RE�►DIt�G_
FROM: Patrick Conlon, Director of Office of Energy Managemen
DATE: September 27, 2007
SUBJECT: Palm Desert Strategic Solar Plan Follow-Up from Council
Meeting of September 13, 2007
ATTACHMENTS: Phase One Budget
Proposal from Suntrek
At the Council meeting of September 13, 2007, the Council asked several
questions, which I have answered below.
1. On the Summary Report of the Southern California Edison funds spent on the
Palm Desert Partnership Program: Do the total funds shown on the report include
money spent by SCE on advertising and promotion, or are these funds just the
straight incentives paid to residents and businesses in Palm Desert?
Response: The funds shown on the Summary Report are just the incentives paid
in Palm Desert and do not include advertising costs. SCE reports that currently
they have encumbered $300,000 for promotion costs since January 1 of this
year. Palm Desert has spent approximately $88,000 on promotion so far this
fiscal year.
2. The Council asked staff to clarify the energy goals of The Palm Desert
Strategic Solar Plan.
Response: As shown on page 22 of the Solar Plan, the goal by the year 2011 is
to install a total of 2.8 megawatts of photovoltaic (PV) solar, or 2,800,000 watts.
This will result in saving approximately 5.5 million kilowatt hours of electricity
used in Palm Desert. Using an average cost of 18 cents per kWh, the annual
savings to Palm Desert is approximately $1,000,000 per year. Since the original
staff report was submitted two weeks ago, we have revised the Proposed Phase
One Budget to add more funds to the incentives and reduce the funds spent on
advertising and promotional activities, and still keep the Phase One costs at one
million dollars. We propose to start Phase One of this activity by targeting 110
homes and 35 businesses for PV solar systems, amounting to a total incentive
payout of $757,500. The remaining $242,500 is proposed to be utilized on
community outreach, business consulting, advertising, and promotional activities,
which is important to start this program aggressively. This investment in Phase
One will result in the installation of 505,000 watts of PV power, resulting in an
annual savings of over 990,000 kWh, and using and average cost of 18 cents per
Palm Desert Solar Program Responses to Council
September 27, 2007
Page 2 of 3
kWh, the yearly savings for Palm Desert businesses and homeowners is
approximately $180,000.
In future Phases Two and Three, this advertising/promotion cost will not be
included in the funding request because it will not be needed. Our existing `Set to
Save' program will be able to pick up the solar program's advertising/promotion
costs as part of the overall `Set to Save' promotional activities. It is envisioned
that the future funding for Phases Two and Three will be for straight incentives
only. This feature will help us on our CPUC application for funding Phases Two
and Three.
The Revised Phase One budget is attached to this memo.
The City investment for Phase One of this program will leverage over $1,250,000
of additional incentive money coming from the California Solar Initiative, which
will be paid directly to Palm Desert homeowners and businesses.
The combined installation, business and residential, of PV solar in Phase One
will be 505,000 watts, which will be 18% of our 4-year goal of 2.8 million watts.
For future Phases Two and Three, 4 million dollars in outside funding, using the
same incentives at $1.50 per watt, is estimated to bring an additional 2,400,000
watts (2.4MW) of solar energy.
Energy Saving Goals: Investing in energy efficiency first, investing in PV second.
Without a doubt, it is far more cost-effective for the home or business owner to
invest in high-efficiency air conditioning or pool pumps before investing in a
photovoltaic (P� solar system. This is a message we continuously promote in
our energy surveys and public presentations. We advise people who ask about
PV solar that it is not prudent to invest tens of thousands of dollars in a PV solar
system, and not have your building as energy efficient as possible.
Therefore, it is recommended that the following conditions must be met before
the home or business qualifies for the Palm Desert solar rebate on the PV
system:
1. A free energy survey must be done on the home or business.
2. If the home has a pool and/or spa, a high efficiency variable speed or
multi-speed pool pump, conforming to Palm Desert Ordinance 1124,
must be installed. This is the most cost-effective measure offered in
the `Set to Save' program, which offers a $500 rebate for this item. A
high-efficiency pool pump will save a homeowner, on average, $50 per
month off their electrical bill. Payback on this investment is under two
years.
G:�Energy ManagementWat Conlon\Staff Reports�PD Strategic Solar Plan follow-up staff report 9-27-07 revised doc
Palm Desert Solar Program Responses to Council
September 27, 2007
Page3of3
3. If the home or business has an air conditioning system less than a 10
SEER in efficiency, the air conditioning system must be changed to a
minimum 14 SEER. Older 6 or 8 SEER air conditioners are inefficient
by today's standards. Changing these old 'energy hogs' to new high-
efficiency air conditioning results in a payback to the owner in 4 to 6
years, depending on use. The `Set to Save' program offers up to
$1,400 per system in rebates for new high-efficiency air conditioning
systems.
If the owner wants to invest in a PV solar system and take advantage of the
City's $1.50 per watt incentive, the above 3 conditions are reasonable and
prudent.
The spin-off benefit from these 3 conditions of approval will be increased activity
in the `Set to Save' program.
3. How much will a 3,000-watt photovoltaic solar system save an average Palm
Desert homeowner, per year? In Palm Desert a 3,000 watt PV solar system, with
a 10% reduction factor, produces approximately 5,885 kWh per year, therefore,
for the average Palm Desert home, which uses power at the Tier 4 rate (35.5
cents per kWh), the annual savings would be approximately $2,080 per year, or
$170 per month. �
Based on the above savings, what would be the typical return on the Investment?
Attached to this report is a proposal from Suntrek, (the solar contractor who just
completed the Palm Desert Middle School solar system for DSUSD), showing a
net cost of a 3kW PV solar system to the homeowner, after incentives, of
$11,375.
If the City Council approves the September 13 Staff request for the Strategic
Solar Plan and adds $1.50 per watt incentive, the payback would be as follows:
Using this installed cost as a baseline, payback to a homeowner who uses the
more expensive power at Tier 4 rate would be approximately 6 years.
It's important to note, the payback estimates are based on today's SCE rates. As
the electrical rates go up in the future, the payback period for the investment in
photovoltaic solar will be shorter.
Submitted by: Reviewed by:
� ^
Pat ick Conlon Carlos Orteg �
Director of Office of Energy Management City Manager
GICityMgrlKaren RussolAgenda Repo�20071PD Strateg-ic Sdar Plan follqv-up stafl report 9-27-07 revised.doc
Save With Solar
Proposed Phase One Budget - Revised
A.Participant Incentives Number Amount Incentive Costs Percent of Budget
Residentiallncentives 110 $4,500 $495,000 49.5%
Business Incentives 35 $7,500 $262,500 26.3%
Subtotal—Participant Incentives $757,500 75.8%
B.Community Outreach Materials and Events
Radio Advertising Campaign $30,000 3.0%
Special promotional mailings 9000 $1 $9,000 0.9%
Printing and miscellaneous promo costs 10 $375 $3,750 0.4%
Banners,posters,other collaterial materials 10 $375 $3,750 0.4%
Solar Town Halls 4 $1,500 $6,000 0.6%
Kick-Off Meetings Costs 1 $3,000 $3,000 0.3%
Subtotal—Community Outreach $55,500 5.6%
C.Implementation Services--Labor Subtotal Hours Subtotal Costs Percent of Budget
PD SOLAR Design Services 178 $10,535 1.1%
PD SOLAR Community Outreach 640 $32,400 3.2%
PD SOLAR Recruiting 850 $39,580 4.0%
SOLAR Site Management Services 900 $42,300 4.2%
Facilitation and Management Services 560 $31,650 3.2%
Overhead $11,735 1.2%
Subtota/Implementation Services 3128 $168,200 16.8%
D.Operations Costs Number Rate Totals %Total
Remote telephone costs 3 $600 $1,800 0.2%
Automobile travel $0 $5,400 0.5%
Solar service van cost 1875 $1 $1,875
Hotel rooms in the field 37 $150 $5,625 0.6%
Testimony,meetings SF/CPUC/CEC 12 $500 $1,875 0.2%
Working meals 218 $18 $3,935 0.4%
Subtotal Operations Costs $18,710 1.9%
GRAND TOTAL 3999,910 99.99%
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(949)348-9276 Fax(949)348-1626 • Lic.#859460
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(760)891-9092 Fax(760)891-9094 • Lic.#859460
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U N T R E K (925)688-8975 Fax(925)688-8984 • Lic.#859460
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(805)522-5102 Fax(805)522-5602 • Lic. # 859460
39 N.Cluff Avc.#A• Lodi,CA 95240
Your Solar Energy Company (209)366-1962 Fax(209)366-2158 • Lic.# 859460
Nevada: 4275 W. Bell Drive,#12• Las Vegas,NV R9118
(702)362-361 I Fax(702)362-3313 • Lic.#39030
Web site: www.suntreksolar.com
REVISED Proposal�
Homeowner Solar Packa�e
Citv of PaLm Desert&SuntreWSolarWorld
First 250 Homeowners
0 3.0 kW dc systems $11,375 or$3.79/watt
3.0 kW(i�$8/watt $24,00(1 Retail value
Rebates: SC�;@$2.50/w/dc ($6,125)Suntrek carries
($2.80/w/ac if I I n=$7,500)
Palm I)escrt @$1.50/w/dc ($4,500)Suntrek cairies
Gross cost- $13,375
Federal Tax Credit 2 000 Homeowner
Net Homeowner Cost- $11,375 or$3.79iwatt
o I.arger systems available if I Iomeowner requests
o Suntrek Lmployee"I'eams install systems in neighbonc�xxi batc;hes of 10 homes
Homeowners 251+
0 3.0 kW dc systems Net Homeowner Cost $16,175 or$5.39iwatt
(Retail value$28,800 or 59.60/watt)
Solar Thermal Hot Water offered with PV package
o Installed cost 55,500 (Retail value=$6,200)
o Incrcasc,�the I�ederal'rax Credit
Price includes•
0 17 SolarWorld SW 175 Mono Sunmodules
o Invcrtcr
o Roof mounting systcm
o Profcssional installation
o All warranties�25 years-Mcxiulrs, 10 years-Inverter& 10 years labor 8i installation
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CITY OF PALM DESE T� pp��70 2iy�����,i�
OFFICE OF ENERGY MANAG
STAFF REPORT
REQUEST: Adopt the Palm Desert Strategic Solar Plan with Phase One funding
from Redevelopment funds, authorize staff to return to Council with a
Management Contract, and authorize the City Manager to begin
negotiations with outside agencies for additional funding for Phases
Two and Three.
SUBMITTED BY: Patrick Conlon, Director of Office of Energy Management
DATE: September 13, 2007
CONTENTS: 1) Phase One Budget Breakdown
2) Palm Desert Strategic Solar Plan
Recommendation:
By Minute Motion:
1. Adopt the Palm Desert Strategic Solar Plan.
2. Authorize Staff to return to the Council with a Management Contract for
Services and Activities, listed in the Strategic Solar Plan.
3. Authorize the appropriation of one million dollars from the Palm Desert
Redevelopment Agency's unallocated Project Area No. 1, 2, 3 and 4 funds
for Phase One funding subject to the following condition: the members of
the Palm Desert Partnership supports the application for CPUC funds for
photovoltaic incentives for future Phases Two and Three.
4. Authorize the City Manager to begin negotiations with outside agencies to
secure additional funding for Phases Two and Three.
Executive Summary:
Currently, in the portfolio of energy efficiency programs for the City of Palm
Desert there are no special provisions for businesses or homeowners who wish
to install a photovoltaic solar system. The Palm Desert Strategic Solar Plan sets
forth a strategy for starting a citywide solar program. Aggressive marketing,
consultation services, and cash incentives are the heart of the Solar Plan.
Cash-back incentives to businesses and homeowners amount to $1.50 per watt
of solar installed, with a cap of $7,500 per business and $4,500 per home. These
Palm Desert Solar Program
September 13, 2007
Page 2 of 3
incentives will be retroactive for all PV solar systems installed after January 1,
2007.
Due to our five-year energy goal, it is imperative to start this solar program
sooner rather than later. To accomplish this, it is proposed that the City fund the
first phase of this solar program. Once the program is started, and with the
support of the Palm Desert Partnership, application will be made to the California
Public Utilities Commission to fund Phases Two and Three from their Energy
Efficiency Funds.
Discussion:
A strong, active program promoting photovoltaic solar will help ensure that the
City of Palm Desert meets our five-year energy goals. The existing statewide
incentives for installing solar are not enough; we need more. In 2006, the City
asked our partner, Southern California Edison, to include an incentive for solar in
the funding for the Palm Desert Partnership Program and we were refused.
However, since then, with the California's newly adopted Energy Action Plan,
which emphasizes the use of renewable energy sources such as solar, wind, and
geothermal, along with the adoption of the new California Solar Initiatives (CSI),
we think that we will have a better chance for success in requesting funding for
Phases Two and Three of our Palm Desert Strategic Solar Plan.
In early 2007 the Palm Desert Strategic Solar Plan was put on hold until
legislative action was completed to clean up the "Time of Use" issue that was in
Senate Bill 1. This Legislative cleanup was completed this past June.
The Palm Desert Strategic Solar Plan focuses major efforts in three categories of
activities:
1. Aggressive advertising and promotion.
2. Business and residential consultation services for community solar
outreach.
3. For businesses and homeowners who follow through and install a
photovoltaic solar system, a cash rebate at the amount of $1.50 per watt,
for the first 5,000 watts on a business (maximum cap of $7,500) and for
the first 3,000 watts on a home (maximum cap of $4,500). The business
and residential rebates would be given only after final inspection approval
by the Building Department.
C.�Documents antl Seriingsystanley�Desktop\PD SVategic Solar Plan staff report 9-13-07.doc
Palm Desert Solar Program
September 13, 2007
Page 3 of 3
Funding and Staffing:
It is proposed that to start Phase One of the Solar Program, the Palm Desert
Redevelopment Agency provide the initial funding of one million dollars. This will allow the
Solar Program to get started immediately and allow time for the City and its partners to
make the necessary applications to negotiate funding from the available energy efficiency
funds administered by the California Public Utilities Commission. It is anticipated that this
process to secure additional funding could take up to a year to complete.
How will the money be spent? Attachment One gives a detailed line item account on
Phase One of this Program, which is summarized as:
Incentives $675,000 (67.5%)
Community Outreach $74,000 (7.4%)
Implementation Service $225,000 (22.5%)
Operations Costs $26,000 (2.6%)
In lieu of adding additional full-time staff positions, it is the recommendation that the City
contracts for services necessary to implement this Strategic Plan. If approved, Staff will
return to Council with a contract for Council's consideration to cover these activities.
Why should the Palm Desert Redevelopment Agency fund the first phase of this solar
plan? The benefit of solar energy in Palm Desert is local and regional in scope. As a result
of very high summer ambient temperatures, including a Summer Design Temperature of
112° F., average load demand and peak load demand of energy used in Palm Desert is an
important factor concerning public safety and adverse economic impacts of power outages
or power reductions (i.e., "brown-outs"). Utility company studies indicate that homes within
the City of Palm Desert use on an average of 50% more energy and average summer
peak load demands exceed 120% more energy than other similar utility customers located
outside the desert climate zone. Reduction of total and peak energy use as a result of
incremental energy conservation measures that this solar plan will achieve will have local
and regional benefits in the cost-effective reduction of energy costs for the business and
home owner, additional available system energy capacity, and a reduction in greenhouse
gas emissions equivalent to the removal of over 10,000 cars from the road.
We will be happy to answer questions.
Submitted by: Reviewed by:
c� �i
P trick Conlon Carlos Ort a
Director of O�ce of Energy Management City Manager
C�Documents antl Settings\�stanley\Desktop�PD SVategic Solar Plan staH repat 9-13-07 doc
Solar Saves - Phase One Budget
A.Participant Incentives Number Amount Incentive Costs Percent of Budget
Residentiallncentives 100 $4,500 $450,000 45.0%
Business Incentives 50 $4,500 $225,000 22.5%
Subtotal—PaRicipant Incentives $675,000 67.5%
B.Community Outreach Materials and Events
Radio Advertising Campaign $40,000 4.0%
Special promotional mailings 12000 $1 $12,000 1.2%
Printing and miscellaneous promo costs 10 $500 $5,000 0.5%
Banners,posters,other collaterial materials 10 $500 $5,000 0.5°/a
Solar Town Halls 4 $2,000 $8,000 0.8%
Kick-Off Meetings Costs 1 $4,000 $4,000 0.4%
Subtotal—Community Outreach $74,000 7.4%
C. Implementation Services--Labor Subtotal Hours Subtotal Costs Percent of Budget
PD SOLAR Design Services 238 514,050 1.4%
PD SOLAR Community Outreach 852 $43,200 4.3%
PD SOLAR Recruiting 1135 $52,775 5.3°/a
SOLAR Site Management Services 1200 �56,800 5.7%
Facilitation and Management Services 748 $42,200 4.2%
Overhead 515,677 1.6%
Subtotallmp/ementation Services 4173 $224,702 22.5%
D.Operations Costs Number Rate Totals %Total
Remote telephone costs 4 5600 $2,400 0.2%
Automobile travel 15000 $0 $7,200 0.7°/a
Solar service van cost 2500 $1 $2,500
Hotel rooms in the field 50 $150 $7,500 0.8%
Testimorny,meetings SF/CPUC/CEC 5 $500 $2,500 0.3%
Working meals 300 $18 $5,250 0.5%
Subtotal Operations Costs $24,950 2.5%
GRAND TOTAL b998,652 99.9%
The Palm Desert Strategic SOLAR Plan
energy environment money
Outline in Brief
Executive Summary
1. Introduction
2. Setting Solar Goals
3. Exploring Options for City Leverage
4. Creating the Financial Offer: Lowering Participant Costs
Select providers
Special financing
5. Positioning through Local Marketing and Outreach
6. Providing Comprehensive Solar Assistance to the Business Community
7. Program Impacts and Benefits
Economic
Environmental
8. Budget and Management Structure
9. Timeline and Critical Path
10. Monitoring, Evaluation, and Documenting Results
Report prepared by
.�
ECOMotion -- The Power of the Increment
EcoMotion. 15375 Barranca Parkway F-104, frvine. California 92618. (949) 450-7155
-- The Palm Desert SOLAR Strafegic Plan -- 1
''C�YRN�R�PR...
what was �t l��e grow�wg up tw the desert be fore we had so�ar?~
A youngster in 2050 ponders the past
just as we ponder life before computers and cell phones.
Executive Summary
The City of Palm Desert has an extraordinary opportunity to meld its energy,
environmental, and climate convictions with its abundant sunshine. This plan calls to
begin a movement to "solarize"the community, fulfilling the City's commitment to
reducing its electricity—energy and peak capacity —by 30% in five years.
With so/ar, Palm Desert will achieve 30:30 energy and capacity-saving goals while
creating savings from conventional power generation worth $53 million.
This Strategic SOLAR Plan presents the steps to create a solar movement in Palm Desert,
a community leadership initiative that can ultimately result in 50— 100 MW of generation
shifted from conventional sources, to clean and renewable, and energy savings that have
the environmental equivalent of taking up to 10,000 cars off the road, permanently.
• In 2008, Palm Desert SOLAR will take the equivalent of 146 cars off the road.
• At the end of four years, solar in Palm Desert will take 1,461 cars off the road.
• Ultimately, Palm Desert SOLAR could have the equivalent benefit of 10,000 cars.
The City of Palm Desert is in the midst of a partnership with Southern California Edison
and Southern California Gas, with the support of the California Public Utilities
Commission, called the Palm Desert Demonstration Partnership Program. The City is
optimistic that discussions about including solar incentives into these partnerships will
bear fruit, but in the meantime, and because solar is so important to the City and its
Council, the City intends to invest one million dollars for the first phase of this Program
to launch a campaign and spur the solar movement described herein.
• Homeowners will get up to $4,500 to become early adopters.
• Businesses will get comprehensive technical support and up to $7,500.
So just what will this look like? Home and business owners will hear about special City
incentives—up to $4,500 for homes and $7,500 for businesses—that augment California
Solar Initiative incentives, adding about 40% to the value of the consumer incentive, and
shortening payback periods. Palm Desert SOLAR will walk prospects and participants
through the program, taking the mystique and complexity out of solar.
The solar program will be fully linked with Set to Save, providing a natural complement
to the efficiency services offered. Select solar contractors will be deployed; preferential
financing available, and consumers will be able to invest in the solar future thanks to the
City's solar program.
-- The Palm Desert SOLAR Strategic Plan -- 2
The Solar City of the Calrfornia Desert.
The recommended implementation scenario for Palm Desert SOLAR is about"putting
the pedal to the metal" in Palm Desert to meet and then dramatically beat the Palm Desert
Partnership Demonstration Program solar targets. This involves creating "The Solar City
of the California Desert." Doing so involves creating a program, providing value-added
services for City residents and businesses, exploring a number of financial incentives,
staffing the program adequately, and launching a major marketing campaign for solar
systems in Palm Desert.
Features of the"High Amperage Solar Scenario"
• Build a Critical Infrastructure
o Create Palm Desert SOLAR implementation team and office
o Competitive solicitation to establish Preferred Solar Financing Partners
o Competitive solicitation to establish Preferred Solar Contractors
• Additional Solar Incentives
o Residential: $1.50/watt for the first 3 kW per home (up to $4,500)
o Small Business:
■ Comprehensive technical assistance
• $1.50/watt for the first 5 kW per business (up to$7,500)
o Recommended interest buy-down approaches for solar loans
• Community Services
o Solar Town Halls, messaging campaigns
o Rooftop assessments, shading analysis
o Bill analysis and optimal system sizing services
o PR and recognition of Solar Champions
• Business Services
o Comprehensive technical assistance
o Rooftop assessments
o Bill and financial analysis
o Quality control
o PR and recognition of Solar Champions
• A Focus on Public Housing
o Addressing the solar potential for 1,200 units
o Maximize City-controlled solar opportunity
o Separate funding mechanism
• Golf Course and Resort Initiative
o Special focus on single-axis tracking ground mount systems
0 2,000 solar-charged golf carts
• Pre-sold to resorts
■ Bulk purchase
■ Potential economic development opportunity for local manufacture
• Community Solar System
o Highly visible demonstration(s)
o Supported by foundations, local businesses, interested citizens
o Ground or pole mounted, sun-tracking
-- The Palm Desert SOLAR Strategic Plan-- 3
This plan lays out a strategy and then the tactical steps to spur at least 100 homes and 50
businesses to participate in the City's solar movement in the first year, establishing a
powerful base - including community awareness and the solar infrastructure - for the next
levels of success in subsequent program years.
-- The Palm Desert SOLAR Strategic Plan-- 4
Complete Outline
Executive Summary
The Opportunity
1. Introduction
Palm Desert SOLAR Background
Where the Sun Shines
Palm Desert's Huge Solar Potential
Residential, commercial, city and state owned
The City's Commitment to the Environment
The Estonia Protocol
Achieving the 30:30 goals with solar
Solar Barriers
Lack of Awareness
Misperceptions and Vestigial Solar Concerns
Economics and the First-Cost Hurdle
Complexity of Each Deal
Purpose
City Initiative to Overcome Barriers
Combined Foundation and Market-Based Financing
Full Leverage of the City's Position in the Equation
A Roadmap with a Timeline for Palm Desert SOLAR
2. Setting Solar Goals
Determine solar potential
Types of Solar
Electric: Photovoltaics
Residential
Commercial
MUSH: Municipal, university, schools, and hospitals
Solar Thermal: Hot water
Residential
Commercial
MUSH: Municipal, university, schools, and hospitals
Build Community Support// Process
Establish an initial community outreach plan
Identify key solar stakeholders in the city
Convene stakeholder meetings and facilitate the process
Hold "solar town hall" to present the solar opportunity
Establish Advisory Board for policy guidance
-- The Palm Desert SOLAR Strategic Plan -- 5
Link with Set to Save: City Solar Goals
Identify metrics for success
Participation
Growth and transformation of local solar industry
Fulfilling the goals of the Estonia Protocol by 2011
Further potentials and rooftop saturation levels
5% of eligible rooftops in 2010; 25% in 2020; 75% in 2030
3. Exploring Options for City Leverage
Solar Demonstration Projects
New City Hall SolarPort 60kW
Falcon Crest, 83 SFH with 2kW each
Opportunities at Desert Willow, the "bladder," etc.
Solar Ordinance (link with efficiency ordinances)
Municipal facilities
Multifamily complexes: models and solar ready homes
New construction, major remodels
Policy Issues
Support solar and efficiency legislation/regulation
Work with Edison and The Gas Company on DG projects
Explore municipal solar utility concept
Launch City-catalyzed pilot program
Planning and Permitting
Develop clear architectural guidelines for solar systems
Develop standard solar system specification sheets
Train plan checkers and installation checkers for solar
Support the plan checking and permitting process
Solar Service Networks
Establish "Preferred Solar Contractor Network"
Establish "Preferred Solar Financing Nefinrork"
Establish "Specialists" referral service
Community Outreach
City leaders' endorsement
Ongoing community and installation evaluation
Celebrate Community Energy and Solar Champions
-- The Palm Desert SOLAR Strategic Plan-- (
4. Creating the Financial Offer: Lowering Participant Costs
Foundation Support
The Palm Desert situation/opportunity
Develop specific requests, address Berger Foundation
Determine optimal use of potential funds
Support specific customer segments
Buy-down interest rates; secure loans
Provide incentives for first 100 residential installations
Meet with potential funding sources
Market-Based Financial Mechanisms
Inventory regional, state, and national financing resources
Residential
Commercial
MUSH: Municipal, university, schools, and hospitals
Create financial menu for solar participants
Loans: Financing through local banks
Assess preferred financial network
RFP for special PD SOLAR financial products
Leases: Power Purchase Agreements (PPAs)
Explore viability of PPAs for market segments
Develop local marketing materials that explain PPAs
Create and Manage a Preferred Provider Network
Customer selection within (or outside) Network
Network to make solar systems more affordable
Create a quality control function
Web site management, blogs, customer referrals, scoring
Options for City Financial Support
Administrative costs
Promotional costs
Special participant incentives
Cash Grants
Interest Rate Buy-Downs
"Credit Support Options"
Guarantee loans
Establish first loss reserve
Linked deposits
Institutional account deposits
Revolving loan fund
Institutional funding for $10 million debt aggregations
Recommend straightforward approach to catalyze community action
-- The Palm Desert SOLAR Strategic Plan-- '7
5. Positioning the Project: Community SOLAR Outreach
Develop a community outreach plan
Mayoral and City Leader endorsements
Create special issue of the BrightSide on solar
Prepare special Palm Desert SOLAR e-newsletter
Web site, portal information
Develop collateral materials for the Palm Desert SOLAR initiative
Fact sheets
Frequently asked questions
Fact Sheets
Solar Envelopes
Solar Valuation Rules
Tax Credits and Ramifications
Identify and work with local reporters and media to promote program
Develop collateral materials to market the menu of financial services
Financing your solar system brochure
Frequently asked questions
Comparison of loans and leases
Launch and feature Solar Champions program
Major accounts are featured in many ways for solar leadership
Press releases and photo shoots
Council commendation
BrightSide articles
Plaque in City Hall lobby of Solar Champions
6. Providing Comprehensive Solar Assistance to the Business Community
Develop business strategy for the business community
Reaching small and medium-sized businesses
Develop Top 25 strategy
Site visits
Outreach through Chamber of Commerce, other business associations
Technical Assistance
Solar consulting
Solar site visits
Economic analysis
Investment criteria
Referrals
Project management
Quality control and Continuous Feedback
Develop case studies
Create business solar champions
-- The Palm Desert SOLAR Strategic Plan-- g
7. Program Impacts and Benefits
Economic
Participant perspective
Regional perspective
Environmental
8. Budget and Management Structure
Budget to manage initiative
Develop funding scenarios
Initial need and City support
Foundation support
Commission-based support
Management Structure
Internal capabilities and resources
The Role of Outsourcing
Long-term perspective
9. Timeline and Critical Path
Initiative timeline
2007 preparatory steps
2008 — 2001 implementation sequence
Quarterly timeline with specific tasks, accountability
10. Monitoring, Evaluation, and Documenting Results
Case studies of select so�ar installations
Bill analysis and metered impact studies
Web site to serve as a program "portal" and repository
Press releases, conferences, photo shoots for notable installations
Prepare articles for media (local and trade presses)
Work with CSI and Southern California Edison to track savings
-- The Palm Desert SOLAR Strategic Plan -- 9
1 . Introduction
Where the Sun Shines
Without question, Palm Desert has huge solar potential. The desert is known for its
unending sunshine, perfect for the harvest of solar power. Solar is a natural for Palm
Desert, in fact, it's the City's "raison d'etre." Snow birds and others flock to the
Coachella Valley to enjoy the winter warmth and sun. Given the City of Palm Desert's
energy and environmental goals, solar fills out an aggressive energy strategy.
This plan presents a"high amperage" solar strategy that will begin the transformation
away from dependence on conventional power sources. It calls for a million dollars of
funding for Phase One of the program to dramatically accelerate the uptake of rooftop
solar electric systems to meet City, State, national, and even global goals for alternative,
renewable power generation. Phase Two and Phase Three of the Program are proposed to
be funded by as yet to be identified outside agencies.
In 2006, the City embarked on a creative and aggressive energy management path,
forming one of the State's most far-reaching energy efficiency partnerships with
Southern California Edison and Southern California Gas. The goal of the Palm Desert
Partnership Demonstration Program is a 30%reduction in peak electrical demand and in
overall electricity use, citywide in five years. While the project is squarely on track, solar
will assure that its energy and capacity goals are met.
This strategic SOLAR plan presents a roadmap for the installation of photovoltaic
systems throughout the community—on homes, businesses, schools, city facilities,
parking lots, etc. -- and for the solar contribution to assure that the Partnership meet and
potentially exceed its capacity and energy goals. When implemented, the plan will cut the
City's carbon footprint and serve as a major hedge against future power price increases.
Palm Desert SOLAR will assure that Palm Desert Demonstration Partnership achieves
its 30:30 capacity-shaving and energy-saving goals.
This plan lays out a roadmap for the complete exploration and promotion of solar energy
systems in Palm Desert. Roof-mounted systems are presented for residential, commercial,
resorts, as well as municipal, university, school, and hospital facilities (MUSH). City and
Redevelopment Agency funds will be considered for community solar systems and
solarizing public housing. A new means for getting solar without expenditures -- power
purchase agreements -- will be explored for the City as well as for Desert Sands Unified
School District and the College of the Desert that cannot take advantage of federal solar
tax benefits. Ground-mount systems will be considered, linking with parking structure
shading applications (so-called SolarPorts) and other unique ways to couple the solar
production with other beneficial applications.
-- The Palm Desert SOLAR Strategic Plan-- 10
Commitment to the Environment
The City of Palm Desert has become a premier community in the Coachella Valley, with
both a high quality of life as well as civic responsibility. The City continues to be led by a
Council that has a record of taking leadership positions on critical issues.
Palm Desert's leaders recognize the opportunity
to take bold action to increase the uptake of solar and to accelerate the local solar market.
Palm Desert's leaders recognize that it is imperative to take bold action and to
demonstrate leadership regarding sustainable energy use, and specifically solar energy.
The Estonia Protocol
In 2005, the City of Palm Desert entered into the "Estonia Protocol" with Southern
California Edison, Southern California Gas, the California Public Utilities Commission,
and The Energy Coalition. The protocol outlined a process whereby the City of Palm
Desert would work collaboratively with Edison and the Gas Company to cut electricity
and natural gas usage by 30% citywide in five years. This includes all facilities, city-
owned and privately owned. The protocol's "stretch goals" were later expanded to
include a 30% peak demand reduction.
In early 2006, the City prepared a scoping study. Just what steps would be required to cut
usage across the board by 30%? How many homes are there, and how many of these
would have to be retrofitted? How many square feet of resort property? A comprehensive
analysis identified housing and building types, and the participation required to reach the
goal, and the penetration of both efficiency and solar systems within homes required to
accomplish the savings targets. By mid-2006 Southern California Edison prepared a far-
reaching implementation plan for the City. It excluded solar because of Public Goods
Charge funding restrictions.
Ultimately Southern California Edison was approved for $14 million in special funding
for the Palm Desert Partnership Demonstration Program in the fall of 2006. (Locally, this
is being marketed by the City as the "Set to Save" campaign.) The Gas Company has also
requested CPUC permission to provide an additional $3 million to the project, though it
recalled its commitment to a 30% reduction given efficient applications of gas use
already in place in Palm Desert. Its new initiatives will make current use even more
efficient.
Using Solar to Achieve 30:30 Program Targets
In 2007 the Palm Desert Partnership Demonstration Program was funded by the
California Public Utilities Commission. Thanks to Southern California Edison and the
parties, its implementation plan was set, and after several coordinated marketing and
outreach activities, program benefits began to flow. Consumers have recognized the
value of the special incentives for high-SEER HVAC systems and variable speed pool
pumps in particular.
-- The Palm Desert SOLAR Strategic Plan -- 11
Despite the portfolio of special programs and services that Southern California Edison
has developed and brought to Palm Desert —and that will serve a vital function in
stimulating energy awareness in town -- the planned activity for the Palm Desert
Partnership Demonstration Project cannot meet the 30% reduction goals without solar.
"We can't meet the Estonia Protocol goal without solar."
Thus solar is back on the table, and the City recognizes that it will have to carry the ball
at least initially. If the special solar promotions, services, certifications, etc. that are
required to stimulate the market can't be funded through public goods charges, what can
the City do to promote solar? How can the City accelerate the natural uptake of solar
systems to achieve its goals? The answers to these questions are the gist of this plan.
The Strategic SOLAR Plan infuses solar energy into the PDPDP and the City's Set to
Save marketing campaign. It is a roadmap for"solarizing" the City and demonstrating the
City's commitment to the 30:30 goals and long-term energy, security, and climate
protection. It begins with City funding to prime the pump with Phase One and deliver
results immediately. Successive Phases may be funded by an innovative three-city pilot
program discussed later, and through other sources and market-based approaches that can
sustain activity.
Fundamental Challenges to Consumer Uptake of Solar Systems
There is no question that the public's awareness and interest in"greening" is at an all-
time high. Interest in solar power is piqued. But the solar sales cycle—from consumer
awareness to investment —is particularly challenging. For this reason, the City serves as
an honest broker, helping its residents and businesses find the best solar solutions, and the
best solar deals. Palm Desert SOLAR will likely not be the lowest cost deal, but it is
intended to help the consumer get the very best lifecycle buy.
Thanks to Palm Desert SOLAR homeowners and businesses will be walked through the
rather complex solar process, assisted at every juncture. Success will be defined for Palm
Desert SOLAR as the effective delivery of the appropriate blend of quality product,
reliable service, maintenance, and price.
There are many reasons why far less than one-tenth of a percent of California households
have photovoltaic systems. A fundamental reason is that consumers have never before
had to invest in utility infrastructure. Nor had they ever considered it. While consumers
are used to buying cars and homes and sending their children to college, consumers have
virtually no experience in investing and owning distributed means of power generation.
........................................................................�
Solar investments have many benefits, but they take time to explain and understand.
In addition to a lack of experience with solar energy, the general public is not particularly
well versed in solar technologies. The public often confuses solar thermal —harvesting
the heat of the sun to create hot water, as was done in the 1970s and 80s (unfortunately,
with many roof leaks and irate customers) -- with photovoltaics that generate direct
current electricity through the conversion of photons of li�ht into electrons. Both
-- The Palm Desert SOLAR Strategic Plan-- ]2
technologies are important to Palm Desert,though this plan focuses primarily on
photovoltaics necessary to meet the 30% electricity and capacity reduction targets.
The lack of awareness about solar
presents Palm Desert with a major opportunity.
The lack of awareness about current solar technologies and programs presents Palm
Desert with a major opportunity: As a highly credible force in town, the City of Palm
Desert will educate its citizens and business community about solar energy. The City will
hold Solar Town Halls and other forms of community briefings on solar power, and how
individuals and businesses can become engaged. The City will meet with every key
account in town, promoting the City's commitment to solar. In many ways, the City will
be taking solar"to the street," by explaining the opportunities that solar affords, and the
terms of the deals. The City will establish special solar financing, it will certify
contractors, and provide a quality control function. Palm Desert SOLAR will give
consumers confidence, and as a result, it will accelerate the market.
Unlike solar installation companies with vested interests,the City will serve as the honest
educator and broker. The City will not represent a product, and will stay at arm's length
from the ultimate sales and relations between program participants and the solar
contractors selected. While serving as a strong advocate of the multiple economic, energy
security, environmental, and cost-saving benefits that solar provides, the City will
"protect" its constituents from aggressive solar sales that threaten consumer uptake.
........................................................................�
Purpose of this Strategic Plan
The purpose of this Strategic SOLAR Plan is to develop a roadmap to implement solar
energy in Palm Desert. What steps need to be taken to leverage the City's credibility and
local contacts and communications and to make solar a common sight in the land where
the sun shines? How much does the City have to invest to spur a solar movement that
begins with meeting the 30% reduction goals? This plan lays out the steps to make solar a
reality, to augment the energy efficiency measures of the Set to Save campaign, and to
make Palm Desert a truly leading and exemplary city in regard to energy sustainability.
-- The Palm Desert SOLAR Strategic Plan -- 13
''i�d put`u� `uor�er� ow the suw awa'so�ar e�ergr�. what a source
�f'power.� i hape we dow't G!R✓C f0 WRGt G[l�I.tG� OG� RN.Gt�GOR� YI.tH. OG[t
be fore we taclele that �
Thomas Edison, circa 1931
2. Setting Solar Goals
There are a number of ways of capturing the sun in Palm Desert, ranging from passive
collection, to active solar thermal systems, to photovoltaics. Solar thermal systems
generally produce hot water that can be used for domestic hot water heating, and for
special pre-heat applications for swimming pools, laundries, and sporting facilities.
Photovoltaics, the generation of electricity from the sun, can be universally applied to
offsetting conventional power generation.
The Immediate Goal
This plan primarily features goals for rooftop solar generation, using photovoltaic panels
that convert sunlight directly into electricity. The immediate goal for Palm Desert
SOLAR is to assure that the 30:30 goals are achieved in the four remaining years. (Two
years have passed since the signature of the Estonia Protocol; program funding, however,
has been in place for one year.) Edison estimates that solar will need to provide 2.8 MW
of capacity in four years to round out the strategies to meet the 30% capacity-reduction
goal.
Consider the enormity of this capacity reduction for a moment:
2.8 MW
=700 household systems (average 4 kilowatts --kW) OR
= 140 small business systems(average 20 kW) OR
= 1 MW resort system +450 household systems OR
= 1 MW resort system + 2,400 kW big box store systems + 250 households
And for perspective,this will bear a gross consumer cost of$14-28 million
Palm Desert SOLAR proceeds with every intention of ineeting and beating the 2.8 MW
goal in the next four years. But it will not happen with a passive position on solar power.
Instead, this plan presents a strategy for the City of Palm Desert to launch a campaign
that will reach the masses —homeowners and businesses - and that will stimulate solar
action.
Setting Longer-Term Goals
After squarely addressing immediate goals, the community solar process will shift to
setting longer-term community solar goals. This involves three fundamental steps:
-- The Palm Desert SOLAR Strategic Plan-- 14
First, an examination of the solar potential. How much capacity can solar provide? How
much electricity can be generated with photovoltaics? Is it sufficient to meet and/or beat
the goals of the 30:30 program? What opportunities are there for solar thermal? What
about rooftops? How much "rooftop real estate" is available? How can the public—
including the resort community—get squarely on board and take pride in the solar
movement? How many Solar Champions can the City anoint in the coming year?
Three-Step Planning
1. Solar Potential
a. Baseline use analysis
b. Solar opportunities
2. Community Input
3. City Refines Strategic SOLAR Plan
The second step involves a process of garnering community input. Who are the solar
stakeholders in Palm Desert? Who might be enlisted to become Solar Champions? What
advice can local solar experts bring to the table? How can the City align its efforts with
natural market developments? What is the appropriate role of the City to accelerate and
transform the solar market in Palm Desert without impeding free market behavior?
Third, the potential study and community input is melded with the City's position.
Ultimately the goals become codified in City planning documents.
Baseline Analysis
This section examines the total load for electricity and natural gas in Palm Desert, with an
eye towards offsetting a portion of these loads with solar energy.
The Palm Desert Building Stock
The City of Palm Desert has a building stock that is largely sufficient for solar. There is
relatively little shading and many commercial buildings—where the economics are most
attractive for solar power generation—generally have flat rooftops ideal for solar
generation.
Palm Desert currently has some 8,000 business licenses; there are on the order of 4,000
active businesses in town. They are located on 466 commercial parcels, though many
parcels have multiple businesses on site. Westfield Mall has 260 businesses on site. There
are also 236 industrial parcels in the City records. Resorts also have lots of open space, as
well as strong demand for shaded parking. Thus "solar-ports," essentially carports topped
with solar systems, are a natural fit for desert resorts.
As for the City's 14,000 households, the rooftops are generally unshaded and gently
pitched. Most homes are single story, easing the solar installation process. The panels
plus their racking systems generally weigh about 3-4 pounds per square foot, an
incidental amount for most roofs. By "racking" panels about four inches above the roof
surface, convection of air can occur under panels, providing a cooling benefit to the roof
and home or business.
-- The Palm Desert SOLAR Strategic Plan-- 15
In terms of electricity use, the two major power-consuming sectors in Palm Desert are
residences and resorts. The following table provides a snapshot of the predominant
housing types, with condos and apartments totaling 17,804 units outpacing single-family
residences at 14,056. Multifamily units are generally more difficult for solar installations
given State net metering rules. (The focus on 1984 relates to the year that double-pane
windows were mandated in California.):
Palm Desert Housing Stock
Pre-1984 Single Family Homes 7,200
Post-1984 Single Family Homes 2,678
Larger-Sized Single Family Homes 765
Mobile Homes 3.393
Subtotal homes 14,056
Pre-1984 Condominiums 11,600
Post-1984 Condominiums 4,204
Multifamily Apartments 2,000
Subtotal Condos/Apartments 17,804
Total Housing Stock 31,860
City of Palm Desert Housing Authority
The City of Palm Desert has a Housing Authority that was formed to preserve and
improve the community's existing older neighborhoods and to provide decent, safe, and
sanitary housing for families of very low, low, and moderate incomes. Palm Desert's
Housing Authority has a track record of successfully getting Redevelopment Agency
money (RDA) from Federal and state sources to build and sell, and refurbish and rent,
housing in Palm Desert. Currently the Housing authority operates 15 apartment facilities
with nearly 1,200 units under its control. (These are in addition to the 2,000 multifamily
units presented in the table above.) This provides another solar opportunity that will be
explored and implemented separately from the Palm Desert SOLAR program.
Baseline Energy Use in Palm Desert
The City of Palm Desert —including all residences and businesses within the City limits—
had an annual energy diet in 2004 and 2005 made up of about $90 million in electricity
costs and about $30 million for natural gas, bringing the annual total utility bill to $120
million. (Increased consumption due to growth in Palm Desert, and increased power
prices, have driven these costs up in 2006 and 2007.)
• Electricity (2005 data)
0 662 million kilowatt hours
o Peak capacity: 67.5 megawatts
o Electric revenues: $86 million
-- The Palm Desert SOLAR Strategic Plan-- 16
• Natural gas(2004 data)
0 19.5 million therms
o $27.3 million
• Total electricity and gas costs: $111.3 million
The businesses in Palm Desert are generally concentrated along the downtown core (El
Paseo's high-end retail and restaurants) and Interstate 10 (commercial and light
industrial). The City is also home to the College of the Desert, a California community
college adjacent to the Civic Center complex. The City has been instrumental in
developing the California State University campus in the northern sphere of the City.
Electric Account Summary
Number of
Consumer T e Accounts % of total accounts
Residential accounts 25,942 81.2%
Small commercial (GS1) 4,173 13.1% •
Large commercial (GS2) 1,134 3.6%
Streetlighting 302 0.9%
Agriculture (TOU) 108 0.3%
Other TOU 273 0.9%
Totals 31,932 100.0%
Electricity Use
The summary tables below show that 662 million kilowatt-hours of electricity were used
citywide in 2005 and that the City's consumer types had an aggregate peak demand of
approximately 95 MW and a coincident peak demand of 67,539 kW. Of this use, the vast
majority was provided to two Edison customer rate classes, "domestic" (residential)
customers that used 42.5% of the total, and large commercial customers (resorts) that
consumed 35.4% of the total. The remaining electricity use went to small businesses, for
municipal water pumping, and to City accounts on time-of-use rate schedules.
%of total kWh/
Consumer T e # Annual kWh kWh Account
Residential accounts 25,942 280,293,402 42.3% 10,805
Small commercial
(GS1) 4,173 55,562,440 8.4% 13,315
Large commercial
(GS2) 1,134 234,487,484 35.4% 206,779
Streetlighting 302 3,343,945 0.5% 11,073
Agriculture (TOU) 108 31,730,208 4.8% 293,798
Other TOU 273 56,988,148 8.6% 208,748
Totals 31,932 662,405,627 100.0% 20,744
In terms of usage per account, Palm Desert's consumption for residences is nearly double
the Southern California Edison system average. This can largely be attributed to air
-- The Palm Desert SOLAR Strategic Plan-- 1'7
conditioning, speaking to the importance of retrofitting older air conditioners and
tightening the building shell using windows and insulation, and also to pool pumping, the
second greatest residential usage of electricity in Palm Desert homes with pools. These
end-uses are being addressed by the Set to Save program. Efficiency steps are far more
cost effective than supplying inefficient load with valuable photovoltaic systems.
Palm Desert Electricity Demand
Palm Desert had a measured peak capacity of 68 MW in 2005, while the actual value is
much higher, likely double this level. Baseline data for residential and small commercial
accounts is not available due to a lack of time of use rates and meters for these "mass
market" accounts.
Consumer T e # Peak kW %Total
Residential accounts 25,942
Small commercial
(GS1) 4,173
Large commercial
(GS2) 1,134 49,057 72.6%
Streetlighting 302
Agriculture (TOU) 108 8,822 13.1%
Other TOU 273 9,660 14.3%
Totals 31,932 67,539 100.0%
Solar Thermal and Natural Gas Savings
In 2004, Palm Desert used a total of 19.5 million therms of natural gas. Of this, 16.5
million therms were provided to the residential sector, representing 85%of Palm Desert's
load. Two million therms were provided to 102 small commercial facilities; one million
therms were provided to two large commercial facilities. At an average therm price of
$1.40/therm, total gas costs in 2004 in Palm Desert were on the order of$27,300,000.
Residential Gas Use: Fully 99% of new and existing residences have natural gas water
heaters and almost all are storage type water heaters. While not the primary purpose of
Palm Desert SOLAR, these will be examined for"solar assist" systems, a form of hybrid
system that taps the free energy of the sun and then tops it off with gas-fired water
heating when required.
Commercial Equipment Gas Breakdown: In 2004, gas use in boilers for space heating
accounted for 41.2% of commercial-sector gas use. Kitchen gas use—stoves and ovens—
accounted for another 38.6%, with water heaters consuming 8.6%, space heaters 4.4%,
air conditioning 3.4%, and other 4.3% malcing up the balance. Space and water heating
will be of particular interest to Palm Desert SOLAR, especially in conjunction with
photovoltaic systems.
-- The Palm Desert SOLAR Strategic Plan-- 1 g
Electricity and Natural Gas Use Projections
Palm Desert is currently in a major and final new development push, expected to be
completed in 2009. The"Northern Sphere" is being developed. According to the City's
Planning Department in early 2006, the development would add 25% more residential
units and 30% more commercial space to Palm Desert's overall footprint.
Projected Five-Year Growth
• Residential sector 25%
• Non-Residential sector 30%
The City's Planning Department projected that the City's 25,000 residences in 2005
would grow by about 25% to 32,000 residences. Commercial square footage will also
grow dramatically -- by 30% -- as Palm Desert's prime location in the valley is revered
with natural shopping locations along Interstate 10.
Through a number of solar strategies—from solar model home requirements to "solar-
ready" strategies (ordinances and incentives), and demonstrations of building integrated
photovoltaic systems, the City has and can continue to promote solar to this development
as the City expands as planned.
Planning Scenarios
There is enormous solar potential in Palm Desert. With a high number of average hours
of daily insolation, as measured by the National Renewable Energy Laboratory, and
considerable unobstructed rooftop as well as open space for ground-mount systems, the
City has a major opportunity.
One of the key planning challenges the City and its Office of Energy Management face is
the uncertainty of the solar market. Prices have been volatile; there are new market
entrants as well as consolidations. Rebates are dropping; tax credits are not permanent.
Rate schedules complicate matters. Without question, the State's solar movement is
suffering from fits and starts. Three solar planning scenarios are presented hcrcin:
A. The Laissez-Faire Scenario
The first is a"laissez faire" scenario in which a city takes a hands-off approach and
allows the solar market to act unencumbered. This is certainly not how Palm Desert has
treated solar energy. Witness the brand new 60 kW solar carport addition at Civic
Center.
But if solar is cost effective—one can argue—why should the City have to expend
resources to further promote it? If the California Solar Initiative is the most impressive
solar incentive program in the country, why does a small city like Palm Desert need to
take the matter of promoting solar into its own hands? Won't combined incentives,
sophisticated financial instruments like operating leases and PPAs (discussed later) allow
major accounts in Palm Desert get solar without any City intervention at all?
-- The Palm Desert SOLAR Strategic Plan -- 19
These are good questions. And there are others: Will the City fulfill its 30:30 goals
without intervention? Can any city accelerate the solar market and thus accelerate the
benefits that accrue to the community from day one? There is, and will always be, a level
of"natural uptake." The challenge now is to accelerate the solar market, to burst away
from business as usual. Palm Desert SOLAR is about taking definitive action.
Through the Office of Energy Management and other channels, the City continues to
endorse and encourage solar without an explicit program or dedicated staff to drive it.
This includes continued demonstrations, BrightSide coverage, maintaining lists of local
solar contractors, and periodic lobbying in Sacramento and San Francisco. Fees have
already been waived for solar permits and inspections. The HIP program (Housing
Improvement Program) allows for energy efficiency and solar upgrades in eligible
properties, as does the Building Fa�ade Improvement program for small businesses that
can address different types of infrastructure improvements.
Ordinances: One powerful tool promoting solar has been a progression of energy
ordinances. The Palm Desert Energy Ordinance of 2006 requires that solar be presented
as a customer option in new housing developments greater than five units. It also requires
2 kW AC solar systems on one model and allows solar to be used as a credit toward the
energy budget of large homes. Future ordinances will ratchet up solar requirements.
Through Palm Desert SOLAR the City of Palm Desert will draw competitively priced
solar contractors to town. Prices will drop and capabilities will increase. The City will
work with financiers to develop special financial products and services that make it easier
for more people to go solar. The City will put its arms around the solar process for the
benefit of the participant, the City, region, and indeed the world's ecosystems.
B. Passive Promotion Solar Scenario(Current City Status)
A second scenario is "passive promotion," and might be more accurately presented as
Palm Desert's form of business as usual. Thanks to the work of the Office of Energy
Management (and its leader working as an analyst and the City's Building Inspector), the
City of Palm Desert has exhibited solar leadership with municipal facilities, and in
promoting solar to interested residents and businesses. City Hall features solar-ports, and
each of the 83 units at the new Falcon Crest housing development developed by the
City's Housing Authority feature 2 kW solar systems.
CSI Concerns: A valid concern of the Passive Promotion Scenario is that the California
Solar Initiative is insufficient to support a major ramp up in solar activity. Many experts
fear that the CSI incentives are falling far too fast—and certainly ahead of any price
reductions in the market due to increased demand —and will greatly dampen investment
in solar systems. There are warnings of another solar boom and bust, like the one that
occurred in the solar thermal industry in the 1980s. The ten-year CSI program has already
stepped through the first three of ten commercial sector tiers of the program's unique
incentive structure in the first six months. As the CSI becomes less and less compelling,
"business as usual" may not achieve the solar results anticipated by the State and
presented in this strategic plan.
-- The Palm Desert SOLAR Strategic Plan-- 20
The step-down of incentives calls for two actions: First, Palm Desert and other
stakeholders must have a voice at the State level. The City must track the CSI and work
with coalitions of cities with similar perspectives. Second, the City of Palm Desert can
use the urgency of the declining incentives to market the value of"going solar now."
Naturally, addressing the root cause—and keeping incentives sufficiently high—is of far
greater priority among the two.
The"High Amperage" Solar Scenario
The third scenario —and the recommended scenario -- is about "putting the pedal to the
metal" in Palm Desert to meet and then dramatically beat the PDPDP solar targets. This
involves creating"The Solar City of the California Desert." Doing so involves creating a
program, providing value-added services for City residents and businesses, exploring a
number of financial incentives, staffing the program adequately, and launching a major
marketing campaign for solar systems in Palm Desert.
The High Amperage Solar Scenario provides
a comprehensive service to move customers to make sound solar investments.
Features of the High Amperage Solar Scenario
• Build an Infrastructure
o Create Palm Desert SOLAR implementation team and office
o Competitive solicitation to establish Preferred Financial Providers
o Competitive solicitation to establish Preferred Solar Providers
• Additional Solar Incentives
o Residential: $1.50/watt for the first 3 kW per home
o Small Business:
■ Comprehensive technical support
■ $1.50/watt for the first 3 kW per business
o Recommended interest buy-down approaches for solar loans
• Community Services
o Solar Town Halls, messaging campaigns
o Rooftop assessments, shading analysis
o Bill analysis and optimal system sizing services
o PR and recognition of Solar Champions
• Business Services
o Comprehensive technical assistance
o Rooftop assessments
o Bill and financial analysis
o Quality control
o PR and recognition of Solar Champions
• A Focus on Public Housing
o Addressing the solar potential for 1,200 units
o Maximize City-controlled solar opportunity
o Separate funding mechanism
-- The Palm Desert SOLAR Strategic Plan-- 2]
• Golf Course and Resort Initiative
o Special focus on single-axis tracking ground mount systems
0 2,000 solar-charged golf carts
■ Pre-sold to resorts
■ Bulk purchase
■ Potential economic development opportunity for local manufacture
• Community Solar System
o Highly visible demonstration(s)
o Supported by foundations, local businesses, interested citizens
o Ground or pole mounted, sun-tracking
The Initial Goal of 2.8 MW by 2011
The initial goal will be to support the City's 30:30 goals and the projected savings from
the Southern California Edison PDPDP Energy Action Plan. This plan presents a strategy
to assure the goals are met by supplementing PDPDP with 2.8 MW of solar capacity. If
this were done by homes alone, 700 homes would have 4 kW solar systems, an
installation rate of 175 homes per year for four years. Naturally the installation of larger
commercial systems will dramatically reduce this household participation requirement.
"We need to have solar panels on every roof.► The sooner we start the better."
The Solar City of the California Desert Vision
The plan presented addresses the initial goal of using solar to fulfill the Palm Desert
Demonstration Partnership's goals. Once the goal is met, Palm Desert and its solar
stakeholders will be afforded the luxury of considering broader horizons, and taking a
much larger perspective, perhaps an aerial perspective: What percentage of rooftops are
eligible for solar collectors? Can the City set goals for this form of saturation? Imagine
Palm Desert as viewed from space in years to come, a sea Qf shimmering blue solar
panels. Consider the following macro goals based on this perspective.
2010 5% of suitable rooftops
2020 25% of suitable rooftops
2030 75%of suitable rooftops
Imagine the following s-t-r-e-t-c-h goals:
That half the homes in Palm Desert—about 15,000 units—each install a conservatively
sma112 kW solar system. That would provide 30 MW of capacity — largely peak
coincident. This level of involvement by the residential sector alone would provide
1,000% of the gap in the 30% capacity reduction target.
Now add public housing: There are 1,200 units under City control. These are among the
"low hanging fruits" of Palm Desert SOLAR. While not every unit can carry solar,there
is considerable potential for quick and decisive action in this housing type. Let's assume
that on average there is one kilowatt per unit available. Let's also assume that the City
can spur the development of a 500 kW Community Solar System.
-- The Palm Desert SOLAR Strategic Plan-- 22
Imagine also that each golf course in Palm Desert installs a megawatt of capacity (about a
$6 million investment). Currently, businesses with tax appetites are provided incentives
for nearly 80% of total system costs. (This is accomplished through CSI incentives,
Federal tax credits, and accelerated depreciation schedules.) That would result in another
34 MW of capacity while providing shaded parking, clubhouse and pumping electricity
requirements, and potentially offsetting ratcheting demand charges during peak periods.
Now let's add the commercial sector, putting panels on flat roofs, often using a non-
intrusive/non-penetrating ballasted system in many cases. We'll assume that 200 facilities
—commercial buildings from offices to warehouses —can each carry a 50 kW system,
adding another 10 MW to the total solar potential. This plan calls for a special emphasis
on helping small and medium-sized businesses make attractive solar investments. By
helping businesses owners through the process, serving as the "honest broker" and
providing objective information, Palm DeseR SOLAR can also shoring up community
development goals, in many cases linking with fa�ade improvements.
The MUSH sector -- municipal, university, schools, and hospitals—provides another
major opportunity. College of the Desert could install 1 MW, rising to the Los Angeles
Community College challenge of"a megawatt a campus." Each of four Desert Sands
Unified School District campuses could be equipped with a 250 kW system while serving
a critical educational function. The City itself—having just installed an additional 60 kW
at City Hall—bringing the total "solarport" installations there to 90 kW -- can broaden its
solar works, for instance by putting a solar skin over"the bladder" at Desert Willow. The
City can also continue to "solarize" new and existing municipal buildings —from the roof
of City Hall to fire stations, the Visitor's Center, etc.
Let's assume that the City could add 2 MW of solar as a result of this Strategic SOLAR
Plan.
Palm Desert's Save With Solar Program
Homes 30 MW
Public Housing 1.2 MW
Community Solar 0.5 MW
Golf Courses 34 MW
Commercial 10 MW
MUSH
College of the Desert 1 MW
Desert Sands USD 1 MW
Cit�of Palm Desert 2 MW
Total 79.7 MW
Surprisingly, this far-reaching and highly aggressive solar vision is not altogether
unrealistic, particularly given likely legislation that will strengthen climate protection
requirements. Conventional power sources are expected to face greater and greater
scrutiny, causing carbon-based fuel prices to increase and the race for alternatives to
accelerate as well. Palm Desert will be well positioned, already meeting the challenge of
transforming the conventional power system to one that acts locally and thinks globally.
-- The Palm Desert SOLAR Strategic Plan-- 23
Through very aggressive solar penetration,
Palm Desert could halve its use of conventional power,
far exceeding the PDPDP program goals with solar alone.
With today's economics for solar investments—including California Solar Initiative
incentives, Federal tax credits, net metering, potential sale of Renewable Energy Credits -
- solar makes dollars and sense. What is lagging is information and a catalyst.
Homeowners are not clear about their opportunities; even for businesses with superior
solar economics, solar is not a front burner issue... and it is rightly perceived as overly
complex. Through Palm Desert SOLAR, the City has the opportunity to educate,
motivate, and spur the solar market by helping interested home and business owners,
demonstrating that solar is a reasonable investment, and highlighting community actions
to beget more solar action.
-- The Palm Desert SOLAR Strategic Plan-- 24
The Community Process
To be effective, the Palm Desert Strategic SOLAR Plan needs the support of both City
leaders and community stakeholders. The purpose of the community process is to tap the
passion and expertise of interested parties, and to get community buy-in for the City's
solar plan. After garnering City and Council support, the following community process is
envisioned:
1. Identify key stakeholders
a. City officials
b. Community leaders
c. Trade representatives
d. Educators and opinion leaders
2. Convene stakeholders
a. Refine vision
b. Create goals
c. Identify key barriers to address and overcome
d. Establish Solar Champion recognition protocol for key accounts
3. Re-convene stakeholders for draft plan input
4. Establish permanent Palm Desert Solar Advisory Board
Initial list of Stakeholders
1. Dick Kelley (Mayor)
2. Jim Ferguson (Council)
3. Cindy Finnerty (Council)
4. Carlos Ortega(City Manager)
5. Sheila Gilligan (Assistant City Manager)
6. Pat Conlon, Office of Energy Management Director
7. Benjamin Druyon, Office of Energy Management staff
8. Buford Crites, former Council member, opinion leader
9. Gordon Bloom, GenSelf(solar installation company)
10. Roy Heine, SunTrek (solar installation company)
11. Carlson Solar representative (solar installation company)
12. Southern California Edison representative
13. Southern California Gas representative
14. Chamber of Commerce representative
15. Other passionate residents, business owners
16. Facilitator: Ted Flanigan
By the conclusion of the facilitated, community input process, the City will have
established secondary solar goals and identified a number of inetrics for success. Just
how aggressive does the City want to be in promoting solar? Are the initial goals in this
plan appropriate to accelerate a local solar movement? Ultimately, what percentage of
energy and peak capacity use will the City work to offset with solar? How will this mesh
-- The Palm Desert SOLAR Strategic Plan-- 25
with other City policies and planned climate action goals? How many kilowatt-hours of
solar contribution are required? How many therms of natural gas can be replaced with
solar for water heating?
-- The Palm Desert SOLAR Strategic Plan-- 26
3. Exploring Options for City Leverage
What can cities do to promote solar and meet defined goals?
Most cities, of course, are not taking action on solar, leaving it to the free mazket spurred
by California Solar Initiative incentives and Federal tax credits. There is justification for
leaving solar to the market. After all, many question whether government institutions can
actually cut red tape and spur innovation.
In Palm Desert, however, the especially aggressive goals of the 30:30 program call for
aggressive steps in the implementation of solar energy to reduce the City's ecological
footprint (through electricity and gas savings) and to cut peak demand.
The California Solar Initiative is currently administered by the State's investor-owned
utilities. It is both the largest photovoltaic (PV) incentive program in America(a ten-year,
$2.9 billion initiative), and one of the most sophisticated. (A smaller, solar thermal
incentive program is now being developed to complement the PV program.) The goal of
the California Solar Initiative is to transform the PV market in the State, building the
number of contractors, reaping the benefits of a competitive market place, and making
incentives less and less important. But some question whether the incentive payments
drop off too fast and become too small. Can the CSI accomplish its goals?
Some progressive cities in California— like San Francisco, Berkeley, Santa Monica, and
Sebastopol -- are working to promote solar in innovative ways. They realize that their
local connections and capabilities have value in accelerating the adoption of solar energy
in their communities, and that they can help their residential and business constituents get
on the "solar band wagon." There are at least nine ways that Palm Desert can leverage its
position to advance the deployment of solar power. This plan explores each of them
before presenting recommendations for Palm Desert.
Before addressing the means for cities to accelerate the uptake of solar systems, let's turn
to a logical question: Why can't the City of Palm Desert simply provide additional cash
incentives for program participants? Isn't cash the only real issue at hand? Well, not
really. This plan addresses a number of strategic means for the City to leverage its
financial muscle for the benefit of the program. These will be discussed in the next
section, "Lowering Participant Costs." As this plan suggests, there is a role for additional
cash incentives, but there are many other critical roles that cities play that are equally
important. There are a host of options for cities to promote and accelerate solar markets.
Means for Cities to Accelerate the Solar Market
1. Municipal Solar Leadership
2. Creating a Local Solar Focus with Honest Advice
3. Local Marketing and Outreach
4. Establishing Special PD Solar Financial Services
5. Establishing a Preferred Contractor Network
-- The Palm Desert SOLAR Strategic Plan -- 27
6. Links with City Government
a. Easing the Permitting Processes
b. Working with Design and Architectural Reviews
c. Use of Geographic Information System
d. Orthographic Rooftop Photos
7. MunicipalOrdinances
8. Formation of a Special Utility District or Venture
9. Solar Champions: Promotion of Successful Installations
1. Municipal Solar Leadership
The City of Palm Desert has taken a lead role and is "walking the talk"with solar energy.
Years ago and in a highly visible display, the 30 kW solar system was installed at Civic
Center on shading carports. In May and June of this year(2007) a additional 60 kW solar
system was installed at Civic Center. This most recent work was done by Carlson Solar—
a local company that won the competitive solicitation issued by the City for the work.
The new Falcon Crest housing complex features small PV systems for each of 83 units.
Bulk Purchase Pro�: Some years ago, Palm Desert took a highly innovative and
frankly bold step with solar energy. In an attempt to promote solar, the City bulk-
purchased 200 Siemens photovoltaic panels. It then promoted a program whereby Palm
Desert residents and businesses could get the equipment at the City's discounted cost.
There was community interest and some uptake, but the innovative program sputtered for
two reasons: First, local contractors were unhappy with the City. The prices the City
offered were less than the contractors could get. Contractors usually make a significant
portion of their profits by marking up equipment costs. With the City's bulk purchase,
contractors could only bill for installation. Furthermore, the City was also unwilling to be
liable for the life of the equipment. Since it purchased the panels, the City would have to
transfer the warrantee, a complex process not easily resolved.
Select City of Palm Desert Solar S, st�
1. Bulk purchase program (200 panels)
2. Shade structures for parking with PVs (90 kW)
3. The Hanks PV/Ice Bear Demonstration site
4. Bus shelters with PV panels
5. Falcon Crest, 83 SFH units with 2 kW AC each
And, there are many more opportunities for muni projects and leadership:
1. Desert Willow, Golf Cart Charging
2. Covering the big "bladder"
3. Housing Authority upgrades
-- The Palm Desert SOLAR Strategic Plan -- 28
Climate Action: The Climate Action Registry, initially formed in California, and now
expanded to 31 states, two Canadian provinces, and two Native American reservations,
provides proactive means of tracking emissions, getting credit for steps taken and
planned, and demonstrating City commitment to the business community. The U.S.
Conference of Mayors has also drafted a Climate Protection Agreement that has been
signed by 600 mayors in 50 states. This plan recommends that Palm Desert join the U.S.
Council of Mayors and sign its climate mitigation resolution.
2. Creating a Local Focus with Honest Advice
One of the most important, but perhaps undervalued, roles for cities in the "solar
revolution" is to be the honest broker of advice for prospective participants. Given the
complexity of solar installations—and consumers' general lack of familiarity with solar, a
city can serve as an informed and fair advisor for interested residents and businesses.
Here are some of the key solar system design parameters that make for complex
consumer decisions, and thus the need for honest advice and guidance:
• Type of system, PV or thermal (or both)
o Building integrated
o Fixed axis
o Tracking systems
• Size of system
o Zero out the bill
o Determine optimal investment level
• System components
o Panels
o Inverters
o Racking systems
o Meters
o Solar collectors
• Orientation
o Shading
o Azimuth
o Tilt
• Performance degradation due to heat and dust
• Roof and ground-mounting
o Condition of Roof
o Tile, composition, flat
o Surface conditions
• System benefits, savings, environmental
• Property value implications
• Financing
• Tax implications
-- The Palm Desert SOLAR Strategic Plan-- 29
Bundling Efficiency and Solar: Solar is best bundled with energy efficiency, pointing to a
powerful way that the City of Palm Desert can help its constituents. While solar is highly
visible, energy efficiency provides the most cost-effective way to reduce consumption.
(The cheapest kilowatt-hour is the one you don't have to produce.) As such, and in
combination with Southern California Edison and Gas Company PDPDP activities, the
City can aggressively promote efficiency first, or in combination with solar systems.
Through efficiency, solar system sizing can be minimized. One California city is
requiring its preferred contractors (all of whom were primarily solar installation
companies) to serve as prime contractors, delivering both solar and efficiency services as
directed by the City program.
3. Local Marketing and Outreach
One of the most valuable functions for a city in a solar initiative is local marketing and
outreach. Cities generally have credibility. This is especially true in Palm Desert. Thus
the key is to tap the City's credibility. By endorsing the solar concept—and later
installations companies and financial providers -- program uptake can increase
dramatically.
The City has an established set of outreach mechanisms that are embellished in Section 5
on Community Outreach:
• The monthly City publication—the BrightSide—is well read and available for
solar messaging.
• The City's web site can promote Palm Desert SOLAR
• The City (or perhaps its mayor) can host a Solar Town Hall in the fall.
• At Solar Town Halls and at Council meetings, the City can recognize existing
"Solar Champions"
• Cities can make a big deal of new installations, for instance sta�ing ribbon-
cuttings with the Mayor.
• The City's clout with the press -- Desert Sun, Press Enterprise, etc. —can be used
to garner maximum publicity for solar action.
Beyond the outreach mechanisms presented above, the City has access to property
records, building permit applications, and other assets that serve as facilitating
capabilities.
-- The Palm Desert SOLAR Strategic Plan-- 30
4. Creating a Preferred Provider Network
One of the opportunities that Palm Desert has to accelerate the adoption of solar energy is
to create a preferred network of contractors. T'his can be done through a RFP process and
a competitive solicitation. Doing so can drive down prices while assuring quality. There
are a number of benefits of establishing a preferred provider network:
• To Drive Down Prices
• To Provide Quality Control (product and installation)
• To Require Preferential Terms
o Highly responsive service when provided with a City lead
o Fixed prices for"reasonable" installations
o "Carrying" rebates so that customers pay net costs only
o Combined efficiency and solar services
o Maintenance requirements such as annual cleanings
• To Provide Systematic Customer Feedback and Evaluation
Let's look at each of these in some detail:
1. Price Reductions: Solar contractors are willing to discount their prices for City
programs if they believe they will get significant volumes of sales. Price
reductions can also be guaranteed for"hot" leads. Pre-qualified leads—
specifically those that are past the"sticker shock" of solaz prices—are worth
about a 5% discount from contractors. Pre-qualified (and even measured) sites —
may be worth an additional5%discount.
Price Reduction Parameters
i. Volume Sales
ii. Pre-Qualified Leads
iii. Pre-Qualified Sites
2. Quality Control: Creating a preferred provider network gives the City a means of
assuring quality installations in Palm Desert. The City can specify the quality of
the solar components —photovoltaic panels, inverters, racking equipment, etc. —
as well as the quality of the installation. The latter can be accomplished by
providing selection criteria scoring that rewards installation experience, including
solar installation, electrical contracting and plumbing for solar thermal. Quality is
maintained throughout the program by on-going evaluation requirements.
3. Preferential Terms: Establishing a preferred provider network gives the City the
opportunity to stipulate a number of preferential terms for program participants.
• Highl,�ponsive service: The City of Palm Desert will sign a
Memorandum of Understanding with each selected contractor that will
stipulate the terms of continued involvement. The MOU will have a
section on contractor guidelines, making clear the job site protocol, and
potentially stipulating the speed of responsiveness—both for the
-- The Palm Desert SOLAR Strategic Plan -- 31
contractor to respond to the City, and for the contractor to respond to the
customer.
o Fixed prices for"reasonable" installations: One option is to stipulate fixed
prices for"reasonable" installations. This is attractive to many prospective
participants leery of being "up-sold" system sizes and add-ons. While
there will also be legitimate add-ons, the City can provide comfort to
participants by fixing prices and by keeping an eye on upwardly creeping
costs.
o "Carr.��" rebates: While some contractors do this as a standard practice,
other contractors require customers to shell out gross system costs and
then recoup rebates from Southern California Edison. Cities can require
that contractors carry the rebates, easing participants' first-cost hurdle
and/or loan origination process. At the onset of an installation
commitment, the contractor will make the customer"assign"the rebate to
the contractor. Then the contractor handles all the rebate paperwork.
(Rebates can take 4-6 weeks to process.)
o Combined Services: Another option is to require the solar contractor to
serve as the "prime contractor" on a job site. (This may require the
preferred solar provider to have a general contractor's license). This
allows for the City to recommend combined efficiency and solar services,
using relatively low-cost efficiency to reduce the overall load, and then
solar to address the balance of power requirements. Since customers often
suffer from inertia, and prefer to write fewer checks (and to manage fewer
contractors), the City can serve combined services to streamline the
consumer process and maximize the value of energy management.
o Maintenance Requirements: Cities can require select contractors to
provide maintenance services beyond their norm. This could include
annual system inspections and even annual (or bi-annual, or quarterly)
cleanings. For larger installations, the City may require that the contractors
monitor PV system production, potentially setting up alarms and notifying
the City and the owner, if the system is operating in a sub-par capacity.
4. On�oin� Customer Feedback and Evaluation: One of the most effective ways to
manage the contractor network is through continuous evaluation and sharing of
results on the Palm Desert SOLAR web site. There, a blog can be maintained that
provides customer referrals, comments, and scoring for installers.
Feedback and Evaluation
i. Web site biog
ii. City hot line
iii. Evaluation forms
Additionally, customers are encouraged to call the City throughout the process
with questions, comments, or concerns. Essentially, the City inserts itself into the
-- The Palm Desert SOLAR Strategic Plan-- 32
solar process, helping when needed to overcome challenges and barriers.
Contractors will also be required to provide each customer with an evaluation
form with a self-addressed, and pre-stamped envelope that routes the completed
form back to the City's solar office.
5. Establishing Special Program Financing
The City can take on a number of functions to provide solar participants with
"preferential" financing. This can range from educating citizens about funding sources
already available, to soliciting special financial products and services.
Identify Local Financial Resources: The most basic local function is to identify local
sources of financing (using CEC website and local banking contacts). Rabobank has
already stepped forward to provide low-documentation financing with no points or fees
for Set to Save efficiency upgrades. The City can work with the Chamber of Commerce
to tap the local banking community. This might begin with an informational meeting—
hosted by the Chamber—and then a more specific discussion with interested lenders.
Identify National Financial Resources: Similarly, the City can help make clear other
State, regional, and national sources, for instance solar financing available through
vendors and associations such as EGIA (the Electric and Gas Industries Association) and
Safe BIDCO for small businesses.
�ecial Palm Desert SOLAR Financin�: A more sophisticated option—and the one
recommended herein -- is for the City to release a Request for Proposals (RFP) for
financial products and services. The purpose of the RFP is to query the financial market
for special deals for Palm Desert SOLAR participants. This could include any of the
following attributes, or a combination of them:
• Easy sign-up
• Low documentation loans
• Unsecured loans
• Financial products, PPAs and operating leases
• Preferential interest rates, and terms
6. Easing the Permitting Process
Cities can expedite solar installations, or hold them back. Arduous design and
architectural reviews and proceedings, for instance, or building inspectors' lack of
guidelines and familiarity, can dramatically slow a PV installation, tainting the reputation
of the process along the way. Cities can help by:
• Waiving permitting fees
• Expediting solaz permitting
-- The Palm Desert SOLAR Strategic Plan-- 33
Palm Desert has already taken two clear steps to promote solar: First, it has waived
permitting fees for solar installations. Second, the City has expedited solar permitting.
Installation Guidelines for Solar: Another way cities can promote solar, or at least avoid
costly time-related delays, is to prepare guidelines for solar installations. If followed, an
individual, or installer has an easy time, assured of being approved. Similarly, guidelines
provide plan checkers and inspectors with guidelines that ease installation approvals.
• Establishing Solar Guidelines
• Special Solar Training for Building Inspectors
Buildin�pector Trainin�: Training building inspectors is another option. Regional
trainings, funded by the California Energy Commission, are offered throughout
California. Informative six-hour sessions can get both building inspectors and preferred
solar contractors on the same page, easing the process and thus accelerating the adoption
of solar systems in Palm Desert.
7. Municipal Ordinances
Cities have the exclusive opportunity of passing municipal ordinances, for instance
requiring all new subdivisions to offer"solar ready" units, and ultimately solar systems.
Palm Desert crafted a series of sequential efficiency ordinances for the 30:30 program,
phasing in increasingly tight requirements to exceed California Title 24 New
Construction building codes. The City now has the opportunity to prepare a similar
phased-in set of ordinances to promote solar energy. (Solar upon resale or remodel are
options to consider.)
The ordinances, of course, may be more effectively introduced and approved by Council
as part of broader green building ordinances. Given the City's interest in green building
that encompasses energy, water, materials, use, etc. -- and LEED standards in particular—
any solar requirements levied by the City may be incorporated into the broader
ordinance(s).
8. Formation of a Special Utility District or Venture
What will be the best way to spur a City-wide solar initiative? Can this be done by the
City's Office of Energy Management, or might it be better to develop a joint powers
authority, or even a municipal utility district or municipal solar utility? Some cities,
Berkeley in particular, are considering establishing a special assessment district.
During the planning process, and throughout the five-year initiative presented herein, the
City will explore its options and determine the best organizational structure to promote
widespread adoption of solar in Palm Desert. While there are quite sophisticated means
of creating a special utility district or structure, at this time it is anticipated that the City
of Palm Desert itself will catalyze solar in town for five years, potentially then supporting
solar with a more limited role thereafter.
-- The Palm Desert SOLAR Strategic Plan-- 34
9. Solar Champions: Promotion of Successful Installations
Given the City's success with outreach, there is no question that successful installations
need to be recognized and championed. "Solar Champions" —those members of the
community that step forward and go solar, can be recognized by the City in ways that no
other private company or utility can. Commendation at City Council (complete with a
scroll and resolution), being part of a special plaque at City Hall, and all manner of PR
will be highly valuable to garner greater and greater participation and community
support.
The City will generate case studies of Solar Champions—with detailed system fact sheets
— for each installation, building a bank of proof of solar system performance in Palm
Desert. This will be used to reach out to the broader community. The case studies will
also cover unique financing arrangements —such as power purchase arrangements, and
loans — so that Palm Desert consumers will fully understand their solar options and
investment opportunities.
-- The Palm Desert SOLAR Strategic Plan-- 35
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4. Creating the Financial Offer: Lowering Participant Costs
Introduction
The cost of solar systems can be overwhelming for many consumers. In fact, beyond the
absolute dollars is a basic and understandable lack of familiarity with solar system costs,
and solar investments. Consumers are used to paying monthly utility bills; these are
anticipated expenses. Consumers are used to buying stocks, and CDs, and putting money
in IRAs and even savings accounts. But spending $10,000, $20,000, $30,000 and up for a
solar investment—about the cost of a new car -- is certainly something new.
The costs of independently owned solar systems —what utilities call "distributed
generation" -- could be considered a mountain of costs. How can the City of Palm Desert
help? How can the City chip away at the costs to make them more palatable? What kinds
of product and vendor discounts can be realized? Can local financing—potentially
secured or discounted —be provided for program participants? Can the City augment state
incentives and Federal tax credits to spur program participation?
First off, the City can help to clarify the existing incentives for going solar. Home and
business owners can take advantage of net metering laws that allow for selling back
power to the utility on par with its purchase price, cash incentives from the California
Solar Initiative, Federal tax credits, and accelerated depreciation for businesses. These
mechanisms, however, have not spurred a solar movement in California, or in Palm
Desert. This plan calls for additional support to accelerate the market.
Current Solar Support Mechanisms:
• Net metering to offset power bills
• Cash incentives through the CSI
• Federal tax credits
• Accelerated depreciation for businesses
The California Solar Initiative: The California Solar Initiative is the biggest in the
country, with some $2.9 billion on the table over the next ten years. Currently the CSI
provides $2.50/watt for residential installations, $0.34/kWh for each of five years for the
measured output of large commercial installations. Each of these incentive levels was
higher, and each of these incentive levels will drop over time. The theory behind this is
that the market will be "transformed," more market activity will increase competition and
drive down prices, making State of California incentives less important.
-- The Palm Desert SOLAR Strategic Plan-- 36
Federal Tax Credits: In addition to State incentives, Californians are eligible for tax
credits. Residential consumers are entitled to a tax credit of 30% of system costs up to
$2,000. Commercial property owners are entitled to a tax credit of 30% of system costs
without a cap. Thus, generally, homeowners can defray about half the costs; businesses
can currently defray about two-thirds of system costs. (Naturally there are exceptions and
tax code issues such as the Alternative Minimum Tax that program participants will be
alerted to discuss with their accountants and tax attorneys.) A bill currently in U.S.
Congress would triple the tax credit and remove the cap on residential installation
incentives.
But the current financing mechanisms for solar are falling short. Net metering laws are
limiting solar system sizes. Many solar experts in California fear that the incentives are
dropping too fast, and that the market has not yet been prepared for lower incentives.
They are hopeful for Federal tax code revisions that will "sweeten the pot," but they (and
the City) cannot rely on them.
So how can a City help reduce solar costs and make investments in solar energy viable?
The City will explore a number of options for doing so. Let's start with the concept of
tapping foundation support.
Foundation Support
It may be hard to imagine foundations lining up to support affluent Palm Desert
residents' pursuits with solar energy. Foundations, in general, are serving a public
purpose, a mission that would not otherwise be accomplished by"the market." And while
foundations may not want to support well-to-do individuals or profitable businesses, they
may well be interested in different angles:
• Working in a targeted geographical area
• Developing new financial models
■ Securing loans
■ Revolving funds
■ Residential Power Purchase Agreements
• Supporting fixed-income seniors
• Providing guarantees for solar loans
• Documenting Palm Desert SOLAR for other communities' benefit
• Buying and retiring carbon rights and credits
• Supporting solar as part of a community's exemplary efficiency program
The Ber�er Foundation: The Berger Foundation is located in the Coachella Valley and
has been highly supportive of a range of projects in the Valley, most recently supporting
the new California State University campus in Palm Desert and the Eisenhower Medical
Center. Given unique channels with the Berger Foundation, Palm Desert SOLAR will
develop a concept and approach the Foundation. Based on the experience with Berger,
the City will consider whether or not to address additional foundations.
-- The Palm Desert SOLAR Strategic Plan -- 37
Market-Based Financial Mechanisms
The Inventory of Solar FinancingLSources: An initial step in the pursuit of preferential
financing will be to prepare an inventory of regional, state, and national financing
resources. This is complicated somewhat by specific lending priorities—residential,
commercial, and MUSH-sector(municipal, university, schools, and hospitals). There are
about a dozen basic forms of financing available for solar and efficiency in California.
Information Sheets on Residential and Business Financin�: The inventory will then be
crafted into information sheets for homeowners and business owners so that they can
make market-based decisions. Many prospective solar owners are likely not familiar with
vendor financing. Just as you can finance a car at a car dealership, vendor financing is
being offered for Sharp, SunPower and other PV modules.
Request for Proposals: A sophisticated step will involve issuing a Request for Proposals
for special Palm Desert SOLAR financial products and services. Through such a process,
the City will be looking for preferential rates and/or terms, as well as privately labeled (or
co-branded) opportunities, all intended to further accelerate solar uptake within the City
limits. The RFP will also seek services and products in the event of City support. What
terms can financiers offer if the City utilizes"linked deposits" or loan guarantees, or first
loss reserves? While the City will not commit to offering financial support, potential
lenders will be asked to present their best offerings without and with City support.
Power Purchase A�reements: One of major trends in the solar world is the use of Power
Purchase Agreements (PPAs). This financial model shifts the investment from the
ultimate consumer—owner of the "host site"—to major financial institutions such as
Goldman Sachs, firms with "unending tax appetites." PPAs —and their providers (major
companies like PowerLight and SunEdison)—are in the game, "gobbling up" CSI
incentive reservations and significantly shaping the industry.
To date, most PPAs are for major customers, be they municipalities, schools, universities,
and major big box chains. SunEdison—which gets it capital from Goldman Sachs—has a
contract for every Whole Foods store in America. The benefits for providers of PPAs are
marked: Their customers need not appropriate money and they are provided with
guarantees for electricity price discounts over long terms (up to 20 years). Ownership of
Renewable Energy Credits can be negotiated.
Potential Host Sites for PPAs in Palm Desert
College of the Desert
WestField Mall
Desert Sands Unified School District
Resorts and Golf Courses
Big box stores— Lowe's, Wal-Mart, Home Depot, etc.
The benefit of PPAs for consumers is that it completely obviates the first-cost hurdle of
investments in solar power. Instead, a consumer provides a host site—and roof—and
signs a contract to buy the system output for x years (typically six years), and then to
either buy-out the system or continue to purchase its output. Most solar PPA contracts
-- The Palm Desert SOLAR Strategic Plan-- 38
give the consumer immediate bill reduction, and then are pegged below conventional
power prices as they escalate.
Opportunities for City Financial LeveragelSupport
• Cash Grants
• Interest Rate Buy-Downs
• "Credit Support Options"
o Guarantee loans
o Establish first loss reserve
o Linked deposits
• Institution account deposits
• Revolving loan fund
• Institutional funding for$10 million debt aggregations
There are a number of ways that the City of Palm Desert could directly financially
support Palm Desert SOLAR:
Cash Grants
One option to kick-start Palm Desert Solar is to offer special incentives for the first
program participants. And nothing quite works like money!
Cash grants could be distributed for the first 100 or 500 or 1,000 homes and/or businesses
that go solar. The $4,500 spiff from the City for participating homeowners will be highly
marketable. Businesses may raise their eyebrows as $7,500 cash incentives are publicized
in the community.
This plan recommends providing every resident and business that elects to
go solar with a cash grant of$1.50/watt, augmenting the State's current
$2.50/watt incentive. The grant will be capped at 3 kW for homes and 5 kW
for the City's 4,000 GS1-rate businesses, making the City's maximum
exposure $4,500 per participating home and $7,500 per participating small
business.
For particularly hard-to-reach market segments — seniors on fixed incomes, schools, non-
profits (community centers, etc.) -- private foundations approached by Palm Desert
SOLAR may be enticed to make the pot even sweeter, potentially matching the City
contribution, and thus increasing the current CSI incentive of$2.50/watt to $4.50/AC
watt (and up for non-profits). In this scenario, a program participant would get incentives
from four sources: The California Solar Initiative, Federal tax credits, the City of Palm
Desert, and foundation support.
-- The Palm Desert SOLAR Strategic Plan -- 39
Interest Buy-Downs
Interest buy-downs are much like paying additional points when you refinance your
home. By paying points, the loan's interest rate is lower for its entire term. Palm Desert
will work with program participants to make sure that they take advantage of interest
buy-downs to the greatest degree possible. Note that paying 3% of system cost—about
$1,000 for an average Palm Desert system -- can buy down interest rates by 1.5%, saving
a consumer about $10,000 —20,000 over the tenure of the loan. Most importantly, from a
participant perspective, monthly payments are less.
Credit Support Options
There are a number of ways that the City can support the credit of a"solar deal," be it a
lease or a loan.
Guarantees: By guaranteeing solar loans, lenders are at ease with the risk. The City of
Palm Desert would essentially be a co-signatory of the loan, and responsible for its full
value. Partial guarantees may be structured if lenders are willing to accept risk, generally
at a higher interest rate.
Loss Reserves: City can be responsible for loan payments in default. By establishing a
loss reserve fund, lenders will be able to lend to prospective participants with lower credit
scores that represent greater liabilities. In the event of a default, a loss reserve would
cover monthly payments for the orphaned system until it can be unbolted from the roof
and deployed in another location. This is recommended herein as a relatively low-cost,
and fundamentally low-exposure mechanism.
Linked Deposits: Many cities have cash savings invested in local banks. If these banks
are willing to be lenders for Palm Desert SOLAR, potential loan defaults can be covered
by tapping the interest payments of savings accounts. This linked deposit scheme gives
banks plenty of assurance, and a new business opportunity.
Additional Financial Options:
• City can establish a low or no-interest revolving loan fund
• City can seek institutional funding for $10 million debt aggregations
-- The Palm Desert SOLAR Strategic Plan -- 40
''sav�H.g the pla�t, o�e so�arsr�steacc at a ti`ue. �'
5. Positioning the Project: Community SOLAR Outreach
The City of Palm Desert has a strong record of community outreach. Well-written
publications coupled with effective communications of all kinds have resulted in strong
capabilities to get the word out about whatever initiative is of interest and importance to
City Council. The City is credible, and in this case the City will use its credibility to
promote a sustainable energy future through solar power.
Being fully endorsed by City Council, and supported by the Office of Energy
Management, Palm Desert SOLAR will be able to take full advantage of the City's strong
communications engine.
Step 1: Analyze the existing environment
• Palm Desert today
Existing solar--In addition to the solar potential as identified earlier, what are the
existing trends in solar uptake in Palm Desert? What segment of the City seems
most interested? What barriers to solar can be identified that are peculiar to Palm
Desert?
Political situation—What is on the horizon at the State level given the current
administration's leadership on global warming solutions? What is happening
regarding State-provided rebates? What about Federal tax credits?
Social indicators — How has Palm Desert reacted to climate change? The green
living movement?
• Analysis of Existing Solar Uptake
Which solar contractors/installers are already most active in Palm Desert? What
other installers have their eye on this lucrative market and will be ready to jump
into action when they see the City's efforts? How can additional providers be
lured to Palm Desert? What about developers in the City that DON'T support
solar? Involving and incorporating each of these will be important to keeping the
program on track.
Step 2: Development of the Solar Outreach Plan
Based on the analysis as described above, the "marketing plan" for Palm Desert SOLAR
need not be extensive, but it does need to include pertinent features:
-- The Palm Desert SOLAR Strategic Plan -- 41
• Identify and characterize target audiences within the City
Much work has already gone into this important step. Still, promoting solar to
residents is different than promoting it to businesses or to educational institutions
or to a resort or to potential installers or to potential financiers. Each audience has
its own needs with regards to timing, facts, preferred communications media and
style, degree of desired customer service, etc.
At the same time, Palm Desert SOLAR will identify other audiences that need to
be included, including press contacts, utility representatives, political officials,
etc.
• Prioritize audiences
• Develop appropriate "products" -- or one basic "product" -- to serve the most
important audiences. In this case, the "product" offered will likely be a
combination of the following:
o The "Solar Advisory Service"
o Referrals to installers and/or financiers
o The financial incentive (provided by the City)
o Quality Control
o Community Recognition as "Solar Champions"
Step 3. Develop messaging for products and for the campaign for each target audience
One challenge will be to identify ways the program can be supported by joint marketing
with other players—manufacturers and installers of solar equipment, financial
institutions, etc. —and to develop appropriate joint messaging.
Step 4. Develop schedule and budget for roll-out of campaign
Palm Desert already has a busy calendar of events that the PD SOLAR campaign can
piggy-back on, such as the Golf Cart parade, different tournaments, etc. In addition, Palm
Desert SOLAR can sponsor its own special events such as presentations in conjunction
with conferences or educational programs, Solar Town Halls, contests, neighborhood
competitions. Good planning will allow these special events to take place efficiently and
cost-effectively.
Step 5. Design marketing materials for use in outreach campaigns, based on messaging,
schedule and budget
o Program brochure
o Special issue of the BrightSide
o Palm Desert SOLAR website or portal
o Palm Desert SOLAR e-newsletter
o Presentation materials (slide shows, videos, etc.)
o Other printed collateral (fact sheets on solar technology, financing options,
FAQ, diagrams, etc.)
-- The Palm Desert SOLAR Strategic Plan-- 42
o Media kits
o Banners, signage, displays for booths
o Other: prizes, stickers, other recognition devices
Step 6. Launch the project with much fanfare!
Palm Desert SOLAR will take liberal advantage of City leaders and personalities to
promote its activities. As partners are brought aboard — installers, financiers—they too
will be incorporated into the communications mix, for instance serving as guest experts at
meetings. Throughout, solar owners—existing or new—will become program
Champions, sharing their stories via newsletters, interviews, etc.
Step 7. Track progress
Since all solar installations will go through the City's permitting department, Palm Desert
SOLAR will easily track actual capacity as it is installed. In addition, Palm Desert
SOLAR will track participation at events and efficiency actions taken through sign-ups,
printed or e-mail evaluation forms and/or evaluation forms on-line. Regular"progress
reports" will be a part of the program.
Step 8. Public Relations campaign to promote the City nationally
Much of what is planned for Palm Desert SOLAR will be of great interest to the entire
nation. A separate marketing component will be a plan to spread the word to increase
Palm Desert's standing among other city governments, large national businesses and even
the visiting public. As the program unfolds, a public relations campaign can be built on
City-wide progress, measured energy savings and case histories of individual
installations.
-- The Palm Desert SOLAR Strategic Plan-- 43
6. Comprehensive Solar Assistance for the Business Community
One of the most important aspects of Palm Desert SOLAR is reaching out to the business
community, from small businesses to major resorts, and helping them reap the benefits of
solar power. Given their highly attractive solar economics, this will be a major
programmatic push and one that will support the local business economy. As peak power
prices increase, and retailers are bound to maintaining comfort and lighting services
during peak periods, solar systems make that much more sense, offsetting the highest cost
power prices.
First off, Palm Desert SOLAR will develop allegiances—for instance with the Chamber
of Commerce—to reach out to businesses with the Palm Desert solar message. For
businesses that just don't know what their opportunities are,
The Top 25
Palm Desert SOLAR will work with business associations and Southern California
Edison to identify the 25 largest power consumers in Palm Desert. A dossier will be
created for each of these in preparation for approaching each of them regarding
photovoltaics. Who know's who? What member of the City government—mayor,
councilmembers, city manager—will be best received by the prospect? What messages
will be most attractive for the client? Which financial mechanisms—PPAs, operating
leases, purchases—are most beneficial for the business?
Small and Medium-Sized Businesses
For small and medium-sized businesses, Palm Desert SOLAR will reach out in broader
ways, but with specific messaging about the solar opportunity they have (notably Federal
tax credits and accelerated depreciation schedules). One option the City has is to link
Palm Desert SOLAR with the Fa�ade Improvement Program. This, and other strategies,
will be explored in the program's first quarters.
Palm Desert SOLAR's services will help businesses throughout the entire solar sales and
implementation cycle:
Technical Assistance
Solar consulting
Solar site visits
Economic analysis
Investment criteria
Referrals
Project management
Quality control and Continuous Feedback
Develop case studies
Create business solar champions
-- The Palm Desert SOLAR Strategic Plan -- 44
7. Program Impacts and Benefits
There are a host of benefits that Palm Desert SOLAR will accrue to participants, the City,
the region, serving utilities, the State of California, and arguably the nation and planet.
These are economic as well as environmental.
Let's begin with the big picture and a summary table of the program impacts presented in
this plan:
Palm Desert SOLAR Savings Summary
Program Percent Solar Annual Annual Equivalent
Year of Goal System kWh Avoided Cars Off
Capacity Generated / Pounds CO2 The Road
kW Avoided * **
2008 10% 280 562,100 730,730 146
2009 20% 560 1,124,200 1,461,460 292
2010 30% 840 1,686,300 2,192,190 438
2011 40% 1,120 2,248,400 2,922,920 585
Total 100% 2,800 5,621,000 7,307,300 1,461
"Assumes 1.3 pounds of CO2 per kilowatt-hour generated from conventional sources
'�Assumes annual CO2 emissions of 5,000 unds er car
As the table shows, there are capacity impacts (kW), generation impacts, and
environmental benefits expressed as avoided CO2 and equivalent number of cars taken
off the road.
The economic impacts of going solar are profound. Assuming conservative 25-year solar
system lives, and a 7% utility rate escalation rate over the same period, the plan presented
will create a direct economic benefit of avoided conventional power purchases of more
than $53 million by the year 2035.
Palm Desert SOLAR will provide community savings of
$53 million over the 25-year solar system life.
The environmental impacts are equally profound: Fulfilling the 30:30 energy and
capacity savings targets with solar—providing a 2.8 MW contribution—will result in 7.3
million pounds of CO2 annually, or 182.5 million pounds over a 25-year life. Put in terms
of equivalent cars taken off the road—and specifically avoided emissions—Palm Desert
SOLAR will be the equivalent of taking 1,461 cars off the road for 25 years.
-- The Palm Desert SOLAR Strategic Plan-- 45
8. Budget and Management Structure
There are a number of ways that a community such as Palm Desert can fund a solar
initiative. Palm Desert began by considering foundation support, but while worthy of
exploration, it's clear that the City cannot rely solely on foundation funding for this
project. The City has explored Federal and state grants and programs, but none are
available to launch the kind of initiative presented in this plan. Thus this plan calls for
start-up funding of one million dollars of City support for the first phase of Palm Desert
SOLAR.
Since signing the Estonia Protocol that established the 30% reduction goals, two years
have passed. In calendar years, one is down, with four to go. To achieve the PDPDP
goals, Palm Desert SOLAR has to be put on a fast track. This strategic plan recommends
bold and aggressive action for solar in Palm Desert, funded—at least initially—with seed
money from the Palm Desert Redevelopment Agency. City leaders have stated that we
need to "strike while the iron is hot."
Along with the commitment to timeliness, Palm Desert SOLAR has to be adequately
funded to be taken seriously. This plan calls for a million dollars, with nearly 70% of the
total going directly to cash grants for participants and critical credit support to allow
nearly every home and business owner to go solar.
Phase One Budget Requirements
The project's first phase budget requirements presented in summary form below, and in
greater detail in Attachment A, reflect the primary categories of a no-nonsense approach.
The City will leverage its existing outreach capabilities. It will hire a contractor to work
with the Office of Energy Management to implement the program, doing the daily
activities required to spur a movement and hundreds of installations. Much of this work
will be "in the field,"or more accurately, on the rooftops of Palm Desert.
Primary Budget Categories Amount Percent
Participant incentives
Residential $450,000 45%
Business $225,000 22.5°!0
Community Outreach $74,000 7.5%
Implementation Services $224,702 22.5%
Operations Costs $25,950 2.5%
Total $1,000,000 100%
Participant Incentives: The bulk of the funds requested to carry out this plan—by several
factors -- will be for direct participant incentives. In the first program year, 67.5% of the
total budget will be paid in direct participant incentives.
Fully 45% of the total amount—or$450,000—is proposed for additional incentives for
residential installations. Another$225,000 will be available to provide incentives for the
first businesses that step forward to participate in Palm Desert SOLAR. (Large businesses
and MUSH-sector properties will value public recognition—as Solar Champions—far
more than what in perspective would be a trivial incentive on the first 5 kW.) Funds are
-- The Palm Desert SOLAR Strategic Plan-- 46
available for at least 100 homes and 50 businesses. These participation levels line up with
the goals presented in the timeline in the next section.
Incentive Notes:
• The incentive levels are highly attractive, and will certainly spur demand. The
program will be run on a first-come, first-serve basis, as funding is available. It is
envisioned that Phase One will span over multiple years.
• The City will pay the incentives in a timely manner, after final inspection, notably
before or at the time that the customer is required to pay his or her solar system
installer.
• Payments will be retroactive to January 1, 2007 to accommodate the
approximately 20 system owners who called the City to see if they should wait for
anticipated incentives.
Implementation Services: A scope of implementation services is presented below. The
budget for this category is intended to provide base compensation for the contractor who
may ultimately be paid through combined base and performance-based mechanisms,
from base pay to sales commissions, to implementation services based on percentages of
grants won, and basis points for successfully financed systems.
Subsequent Funding Scenarios
Phase One for Palm Desert SOLAR is projected to result in savings of 10% of the four -
year program goal, or 280 kW of capacity. The first phase program cost is a million
dollars.
In the future and for subsequent program phases,there are a number of scenarios that
might provide financial support for Palm Desert SOLAR.
• A budding partnership of"innovator cities" (Palm Desert, Irvine, and Santa
Monica) may serve to showcase a utility-funded and integrated efficiency/solar
combination approach. While hopeful, Palm Desert is so committed to solar, and
it is so dedicated to incorporating solar into the Palm Desert Partnership
Demonstration Project, that it seeks to initially invest its own resources in the
program. If special program funding becomes available from the State, the
funding source can shift from the RDA to State resources without disrupting the
program's progress and structure.
• Assessment districts may be an appealing mechanism worthy of exploration,
collecting funds from the public for public improvements using revolving
mechanisms.
• Another policy option is to test the applicability of Redevelopment Agency funds
for public purposes including solar systems on households in town.
• Further, the City can explore legislation that would allow Community
Development Block Grants to be used for community projects to curb greenhouse
gases.
-- The Palm Desert SOLAR Strategic Plan-- 47
• Palm Desert SOLAR will explore the opportunity to aggregate and sell
Renewable Energy Credits, another means—used successfully in New Jersey and
other areas—of sharing solar costs and effectively reducing consumer investment
requirements.
But in the meantime, the clock is ticking and the City is ready to take action.
Management Structure
The City of Palm Desert established the Office of Energy Management(OEM) in early
2007 to serve as the focal point for energy efficiency and renewable energy activities.
Today the OEM is squarely driving the Set to Save program, coordinating local resources
and "taking it to the streets"vis-a-vis household assessments. While it is to be
commended for its solar works with municipal facilities, and can be credited for its role
with "passive promotion" of community solar, the current staff level is not capable of
taking on a project of the magnitude of Palm Desert SOLAR.
This plan calls for contracting for the bulk of the work required—the 4,1$1 hours of tasks
projected in Phase One -- to make Palm Desert SOLAR an exemplary reality. The
outsourced management of Palm Desert SOLAR is divided into five areas:
• Pro�ram Desi�n: The program begins with refining the design, gathering some
additional information, convening key stakeholders to garner input and buy-in,
and finalizing strategies, tactics, and plans.
• Community Outreach: The second aspect involves community outreach, primarily
in-person outreach to home and business owners, helping them through the
process one step at a time. The contractor will work closely with the City's
Community Relations group to provide appropriate solar content to the
BrightSide, and other outreach communications. Palm Desert SOLAR will have a
booth at community events, farmer's markets, etc.
• Palm Desert SOLAR Recruitment: The third area is recruiting participants. This
involves telling the story again and again, as well as climbing upon rooftop after
rooftop to assess its solar potential. A key program focus will be on recruitin�
Palm Desert's top 25 commercial accounts, and then helping them through the
step-by-step process.
• Solar Site Management: Fourth encompasses site management services, and
making sure that installs meet or exceed the participant's expectations.
• Project Facilitation: Finally, the process of launching a solar campaign in Palm
Desert will require diligent facilitation and management. While not particularly
glamorous, the contractor will necessarily take the time to bring people,
companies, departments,together.
-- The Palm Desert SOLAR Strategic Plan-- 48
Palm Desert Solar Implementation Services
Category Principal Team Hours
Design 108 238
Community Outreach 208 852
Solar Recruitment 133 1,135
Solar Site Management 72 1,200
Facilitation/Management 268 708
Total 789 4,181
This plan calls for approximately four thousand hours of contracted labor working in
close collaboration with the Office of Energy Management and the PDPDP program, to
launch, promote, recruit, and successfully manage the program -- about two full-time
equivalents. Naturally a contractor would provide these hours based on a strategic split of
varying and precisely applied skills sets including design, communications, marketing,
operations, and facilitation.
-- The Palm Desert SOLAR Strategic Plan-- 49
9. Timeline and Critical Path
This section assumes that to succeed in meeting the PDPDP program goals —and to reach
beyond to a robust solar platform worthy of the "SOLAR SAVES" moniker-- the "high
amperage" solar scenario needs to be carried out.
The Palm Desert Partnership Demonstration Project runs from 2006-2011. Palm Desert
SOLAR will initially be aligned with PDPDP, seeking to fulfill the solar energy and
capacity targets presented in the PD Energy Action Plan. To meet the goal of 2.8 MW of
peak capacity by 2411, the City will need to act in an orchestrated fashion for the next
four years. Attachment A presents the projected annual savings summary in detail.
Preliminary Four-Year Program Time Line (2008 — 2011)
2007 Preparatory Steps
• Prepare strategic plan as living document
• Identify and seek external funding
• Convene Palm Desert stakeholders
• Determine program design
o Management structure
o Operating budget
• Secure City Council support
• Develop Palm Desert SOLAR web site
2008 Milestones
• Financing: Develop preferred financial partner network
o Develop community fund mechanism to sustain operations, secure financing
• Contractors: Develop preferred contractor network with preferential pricing
• Prepare outreach materials/strategies according to plan
• Launch program publicly with significant fanfare
• Prepare SOLAR presentation and deliver to 24 audiences in Palm Desert
• Have a PD SOLAR presence at every City/communiry event, fair, etc.
• Achieve small but demonstrable results for program escalation
0 10% of target
■ 280 kW= 70, 3kW residential systems + 7, 10 kW business systems
2009 Milestones
• Dramatic escalation
• Work to bring down participant prices based on proven volumes
o Work with financiers
o Work with contractors and their product distributors
• Shift community outreach campaign to encourage others to join the movement!
• Document results in line with PDPDP
• Achieve doubling of annual results
0 20%of target(560 kW= approximately 400 households)
-- The Palm Desert SOLAR Strategic Plan-- 50
2010 Milestones
• Re-issue RFP for preferred contractors pricing
• Another doubling of annual results
0 4Q% of target(1,120 kW=approximately 800 households)
2011 Milestones
• Reissue RFP for preferred contractor pricing
• Accomplish PDPDP target results
0 30% of target(840 kW=approximately 600 households)
• Fully document program for replication
While not a technically astute means of ineasuring required levels of participation, the
timeline uses a simple household proxy to count and gauge progress. In total, to achieve
the 2.8 MW reduction—and assuming a conservatively low average of 2 AC kW per
home -- there would need to be 1,400 homes participating over the four-year period.
Naturally many homes will have larger systems—if we assume 4 kW the number of
homes is slashed to 700.
There will, of course, be commercial and MUSH sector projects, many of which will be
very large scale. As such, the likely number of homes will be in the 500—800 to achieve
the target. This is out of a single family housing stock of approximately 9,000. Solar can
also be put on multifamily complexes and in ground-mount applications.
-- The Palm Desert SOLAR Strategic Plan-- 51
10. Monitoring, Evaluation, and Documenting Results
Prepare case studies of select solar installations
The City will document select solar installations to promote more of the same. A simple
format will provide sufficient—but not overwhelming—information for home and
business owners while recognizing the Solar Champions that made these projects real.
Conduct bill analysis and metered impact studies
Closely related, the City will conduct bill analyses to track before and after solar system
savings. In addition to kilowatt-hour generation, the City will examine rate structure
impacts... all in an attempt to provide other home and business owners with the best
possible advice based on actual installations in town.
Use web site to serve as repository of case studies
The Palm Desert SOLAR web site will be used as a repository for solar information and
case studies. Interested home and business owners will be able to click on similar
properties to get a better feel for the process and economics. The case studies will be
prepared using a standard format for ease in comparison.
Press conferences and photo shoots for notable installations
One of the City's great opportunities is to tout notable installations. Ribbon-cuttings, for
instance, can involve the Mayor and other top City officials such as Council Members,
the City Managers Office, and Department heads. Local TV and press officials will be
invited to these events, begetting more program interest and participation. Local cable TV
can be used as a powerful conduit for case study and programmatic information.
Articles for the media
The City of Palm Desert will strategically prepare articles for the media, and to have its
officials present the program to other cities. In advance of presentations, the City will
make sure to have outreach materials ready so that the City can be highly responsive, and
so that staff time is minimized in the process. Certainly the public relations value of the
"solarization" of Palm Desert can be capitalized upon by the City's visitors and
convention bureaus.
Tracking SOLAR results with the PDPDP
Throughout the process, Palm Desert SOLAR will work closely with the Palm Desert
Partnership Demonstration Project to document savings, and to measure results. Through
quantitative analysis and strategically infusing the solar message and results within the
community, solar initiatives will become a solar movement. Ultimately, this movement
will become a model, and Palm Desert will be recognized not only in Southern
California, but throughout California, and across the United States. With the political will
to do so, Palm Desert will indeed become THE SOLAR CITY OF THE CALIFORNIA
DESERT.
-- The Palm Desert SOLAR Strategic Plan-- 52
Michelson, Wilma
From: Gilligan, Sheila -
Sent: Thursday, September 13, 2007 1:32�PM
To: Michelson, Wilma
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